First Solar shares fall 16 percent in Thursday trading after a cut down demand expectation
Chinese solar equipment manufacturers cut the demand and supply estimates for the year due to global economical health
This year will certainly be a mixed basket for First Solar, the largest US-based solar panel makers. The company’s stock fell steeply down 16 percent on Thursday after its Chinese purchasers cut 2012-13 sales expectations.
The company had been running hot streak earlier this year after a sloppy start. After a series of dips on the graph, summers brought prosperity. Earnings rose 136% and revenue rose 80% to $957.3 million largely from selling utility-scale power projects. The company went as far to increase its expectations on revenues this year, mostly because of the big surge in construction and development.
On the other side of the world, Chinese market grew, mainly because of the hefty investment by the government. The mass production of solar equipment in the country resulted in huge drops in prices of silicon wafers, used in the solar cells, almost 73 percent in 2010, according to Maxim Group.
Yingli Green Energy and JA Solar Holdings, the two Chinese companies lowered their expectations on the demand and supply of solar devices in the year, due mostly to the beleaguering global economy, especially in Europe.
The shares of both companies fell in the stock market. Yingli’s US stock fell 9 percent to $1.70 which is the lowest this year. JA Solar Holding saw a fall in fractions but its share price is already in cents. The company’s price has not seen a figure of 5 this year.
The earlier boost in the earning in the solar market was due to report averred by Trina Solar. The company also saw a fall in its holdings after the news from China. Its equity fell 5 percent on the same day.