Chinese Solar Company Cuts Shipment Forecast
NEW YORK (AP) -- Chinese solar company Yingli Green Energy Holding Company Ltd. on Monday cut its third-quarter expectations for shipments of the photovoltaic modules it makes.
Yingli now predicts shipments will increase by a "low-twenties percentage" compared with the same quarter a year earlier. Previously it predicted shipments would rise by a high twenties percentage previously.
The new forecast works out to between 1,580 and 1,630 megawatts of PV modules, down from 1,700 to 1,750 megawatts.
Yingli also said that it sees a $40 million noncash inventory charge dragging down its margins. It now expects overall gross margins between 10 and 11 percent. Excluding that charge, it expects margins of between 16 and 17 percent.
Solar companies have been struggling due to fierce competition and changes in technology that have forced some out of business. Weak demand in vital markets like Europe has made matters worse.
Yingli expects to release its financial results for the third-quarter on Nov. 23.