Yingli revises Q3 guidance down07. November 2011 | Industry & Suppliers, Markets & Trends | By: Becky Stuart
The photovoltaic giants are not immune to the current market conditions, as has been frequently witnessed throughout 2011. Yingli Green Energy Holding Company Limited is the most recent company to jump on the guidance revision bandwagon, as it prepares to announce its third quarter (Q3) 2011 financial results.
Based on its preliminary results, the Chinese photovoltaic module manufacturer has said it expects its Q3 to perform worse than originally anticipated. The reasons cited were the market conditions, estimated production capacity and expected customer demand.
Shipping targets have, as such, been revised down, from between 1.7 and 1.75 gigawatts (GW), to between 1.58 and 1.63 GW, thus representing a quarter-on-quarter percentage increase in the low, as opposed to the high, 20s.
In Q2 2011, the company reported both record shipping volumes and increases, having raised shipments by 36.6 percent from the first quarter of the year.
Yingli also expects to achieve a poor gross margin of between 10 to 11 percent, in comparison to a previously forecasted gross margin in the high teens.
Gross marign was also negatively affected in Q2 2011, with the company reporting that it had decreased down from 27.3 percent in Q1 and 33.5 percent in Q2 2010, to 22.1 percent in Q2 2011. "The decrease in gross margin quarter over quarter was primarily caused by the decline of average selling price," explained Yingli in a statement released at the time.
The company is scheduled to release its unaudited Q3 2011 financial results on November 23.
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