Initially, the Chinese manufacturer expected to ship between 330 and 350 megawatts (MW) of photovoltaic wafers and modules in the second quarter. However, due to the current market conditions, it has revised these figures downwards, to between 290 and 300 MW.
Meanwhile, it has decreased its projected gross profit margin from between 25 and 27 percent in the second quarter of this year, to between just 17 and 19 percent.
Revenues are also expected to take hit, with ReneSola expecting to reap USD$235 million to $245 million, instead of $280 million to $300 million.
In a statement, Xianshou Li, ReneSola’s chief executive officer, explained: "We experienced greater-than-expected price declines in both our core wafer business and supporting module business in the second quarter of 2011."
On a more positive note, he added: "Although the decline in wafer prices will impact our second quarter margins, we believe our low manufacturing costs will continue to decrease with our in-house polysilicon production expansion and proprietary technology advances in manufacturing and will help ease margin pressure. Additionally, our wafers are still selling at a 100 percent utilization rate."