Solar Sector Hit by Warning from Germany’s Q-Cells

Solar stocks are feeling some heat Tuesday from a June quarter warning by the German solar products provider Q-Cells (QCE.F).

“The prolonged weak development of the global photovoltaics markets has continued to negatively impact the business development of Q-Cells in the second quarter,” the company said in a statement. “The seasonal market upturn which the industry had been anticipating to start in the second quarter has broadly not materialized for Q-Cells as yet.”

The company sees Q2 revenue of 142 million Euros, down from 225 million in Q1, with a loss of 62 million Euros, down from a profit of 15 million. Q-Cells said the weak results reflect “lower sales volumes, the postponement of a large scale project to the third quarter and the continued downward trend in solar cell prices.”

Q-Cells also said that given “it will not be possible” to hit its previous full year revenue and production targets.

In trading in Frankfurt, Q-Cells shares fell 15.5%.

Among other solar stocks:

• First Solar (FSLR) is down $5.09, or 3.5%, to $140.70.
• SunPower (SPWRA) is down 85 cents, or 3.7%, to $22.30.
• Suntech (STP) is down 24 cents, or 1.6%, to $14.68.
• Yingli (YGE) is down 53 cents, or 4.9%, to $10.25.

Original post

Comments

[Zenfar:]

Will be interesting to see if this is just effecting Q-Cells or the industry as a whole.

Still long US Solar and Tech

Jul 14 02:21 PM

[gebby:]

breaking news on cnbc yesterday. china seeks to have solar replace coal as main energy source. but as usual this point made by a chinese expert on china was ignored and instead cnbc harped on the currency statements. solar is a huge threat to the military industrial complex. when we are getting our energy from the sun we dont need to battle for limited resources. look at the war in iraq for oil as instructive.

eric report the real story

Jul 15 08:49 AM

[Ferdinand E...:]

Breaking news on cnbc: "China seeks to have solar replace coal as main energy source":

Breaking news in my latest daydream: Ferdinand E. Banks will be appointed US Energy Secretary next week. Everything considered the odds on the second of these liklihoods is about one in one-thousand, but I would rather bet on it than the first.

Before I sign off, what in the ____ is cnbc, and how do I make sure that I never come into contact with it.

Jul 15 09:10 AM

[tginomorebush:]

savage is once again doom and gloom for solar ...... nothing new!

Jul 15 09:19 AM

[jerrydd:]

This is actually good news as Germany's feed in tariffs have distorted the market keeping solar panel prices too high.

Now panel prices are dropping they are starting to make economy sense and about $2/wt retail or better $1.50/wt sales will go up with a bullet as homeowners, others buy them in large numbers.

The company that makes them in a package with mountings, inverter to just set in the back yard or bolt on the roof and just plug in for $4/wt will make a fortune as it's install cost then that is keeping the market small. And since homeowners pay a lot more than utilities do payback is much faster.

Jul 15 10:11 AM

[Road Runner:]

gebby, Do you have a link to the CNBC article that talks about China seeking to have solar replace coal as main energy source?

Jul 15 10:54 AM

[Tonny:]

that is mean high cost solar products should be out, maybe that is good news for chinese makers or low cost sector. Germany's makers revenue going down is not present maket weakness, but warning the cost is the most important thing for now! pricing war is started! lets go and look!

Jul 15 09:06 PM