In its Q3 report, ReneSola (SOL -17.7%) states it has decided to "permanently cease production" at its Phase I polysilicon plant, following unsuccessful effort to lower its cost structure. A $202.8M charge is being taken on the plant's assets.
The company saw Q3 wafer/module shipments of 851MW, roughly flat Q/Q but above guidance of 730MW-750MW. Module shipments rose 6.6% Q/Q to 462.9MW, and are expected to be in a range of 490MW-510MW in Q4.
ReneSola is upping its full-year wafer/module shipment range to 3GW-3.1GW from a prior 2.8GW-3GW.
Q3 gross margin was 8.1%, up from 7.3% in Q2 and -18% a year ago (no typo), and in-line with guidance of 7%-9%. Investors may have wanted more in light of the big GM gains posted by some peers. Q4 GM is expected to be in a range of 9%-11%.
Strong sales to the U.S. and other overseas markets improved ReneSola's ASPs; the company sees the trend continuing in Q4.
Cash/equivalents totaled $438.5M at the end of Q3, and total debt/borrowings $1.53B.
Q3 results, PR