China Sunergy Co. Ltd., a specialized solar cell and module manufacturer, today announced its financial results for the second quarter ended June 30, 2011, and cut its full-year shipment outlook based on lower shipments and selling prices in the second quarter of 2011.
For the second quarter of 2011, China Sunergy reported revenue of $144.0 million, a 22.4 percent increase over the second quarter of last year, but a decrease of 13.1 percent compared to the first quarter of 2011.
Gross profit for the second quarter was $3.7 million, an 84.1 percent increase over the second quarter of 2010 and a sequential decrease of 79.2 percent compared to the first quarter of 2011. Gross margins dropped to 2.6 percent in the quarter from 10.7 in the first quarter.
The company reported net losses at $16.9 million, or $(0.42) per ADS, compared to $13.8 million, or $(0.33) per ADS, in the second quarter of 2010.
As of June 30, 2011, the company had cash and cash equivalents of $117.4 million.
Stephen Cai, CEO of China Sunergy, said that while quarterly performance was subpar, the company anticipates a stronger performance in the third and fourth quarters as it extends its market reach and prepares for increased demand in the solar market.
“Our second quarter results, while disappointing, marked a turning point for China Sunergy, which expects a significant rebound in the second half of 2011. The focus of the Company in the second quarter was on diversifying beyond Europe and into new geographic markets, especially the United States and India, but the results from this strategic expansion will not be reflected in our financial performance until the second half of this year,” Cai stated in the press release. “Likewise, our capacity expansion and technological improvements represent a deliberate attempt to plan ahead for future demand in emerging solar markets such as the U.S., India, and our home country of China. We are investing now in our long-term future.”
China Sunergy expects third-quarter shipments between 140 MW-160 MW; gross margin for the third quarter between 3 percent and 5 percent; and full-year shipments between 470 MW-500 MW.
For more information visit www.chinasunergy.com
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