Many photovoltaic manufacturers continue to reduce losses in 2012, with China Sunergy the latest to post Q3 results. However the crystalline silicon cell and module manufacturer is still some way from posting a profit.
With net margins of negative 39% and losses per share US$1.74, things can hardly be said to be going well for China Sunergy. However it is sequentially reducing its losses and managed to increase its cash position by $25.5 million, to $416.5 million.
In a statement announcing the result, CEO Cai described the quarter as marking a turning point, as the company diversified its end markets and developed its downstream business. "In spite of a challenging market environment, our financial performance of this quarter remained in line with expectations, and the company has performed solidly in managing costs and cash flow," said Cai.
While Italy and Germany remained important markets for China Sunergys modules, the contribution of the Australian market was significant, accounting for 26% of total revenue. The company signed a 7.8 MW sales contract with the Urban Group in Australia, with the delivery completed in August. In other markets, China Sunergy secured 50 MW in sales to the eastern European markets of Romania and Macedonia.
Shipments totaled 82.5 MW, of which 81.9 MW were modules, down by 45.1% from Q2. China Sunergy forecasts shipments between 80 MW and 100 MW in Q4, registering a net loss.