Yingli sees negative margins on lower quarterly shipments
Chinese PV manufacturer Yingli says it expects module shipments for the third quarter of 2012 to come in about 17% lower than the prior three months.
In preliminary results, the company predicts a gross margin in the negative range of 22% to 24% for the quarter, when it will also make a non-cash provision for inventory and depreciation relating to underused capacity.
But Yingli will also reverse a provision made in its first quarter for US duties following the federal government’s final verdict on trade duties against Chinese solar imports, which was partially favourable to the company.
New York-listed Yingli says without the effects of the various charges and provisions, its quarterly gross margin would be in the region of 0% to 1%.
“Despite the sequential decrease of module shipment and declining PV module selling prices as we expected due to supply-demand imbalance, we are inspired that our industry leadership continues to be solidified as we quickly expand our market share," says Bryan Li, Yingli’s chief financial officer.
The company has adopted new manufacturing processes and worked with its supply chain to reduce costs, he adds.
Yingli’s 2012 module shipment guidance was in August cut to between 2.1GW and 2.2GW, an increase of 31% -37% compared to 2011’s level. It had previously forecast a more than 50% year-on-year boost.
Yingli will release its final results for the July-September period on 28 November.