Skip to comments.First Solar Restructuring Leads To Loss Of $449M
Posted on 05/07/2012 12:30:25 PM PDT by robowombat
NEW YORK (AP) A shakeout that is rattling the solar panel industry has sent First Solar, once among the industry's biggest and strongest companies, to a big quarterly loss.
First Solar Inc. said Thursday that it lost $449 million in the first quarter,
The company also announced that its Chief Commercial Officer, James Hughes, would become CEO, replacing interim chief and company founder Mike Ahearn.
First Solar said the loss amounted to $5.20 per share.....
In the year-ago quarter, the company earned $115 million, or $1.33 per share, on revenue of $567 million.
First Solar, along with other makers of solar panels, is struggling to adjust to a dramatic plunge in panel prices. A boom in the construction of solar panel factories, especially in Asia, ... This created a glut of panels and sent prices tumbling. European demand fell because cash-strapped governments there reduced renewable energy subsidies.
First Solar is wrestling with a unique problem, too. An enormous cost advantage over its competition has eroded. As a result, the company's stock has fallen to about $18 per share, from $140 a year ago.
"I question how First Solar is going to profit in that environment," Chew said.
(Excerpt) Read more at manufacturing.net ...
How’d that middle class welfare for greenie lefties work out?
I use PV and radiant solar energy because of the inconvenience of being too far from the nearest power company hookup. It’s really expensive, if you don’t install everything yourself and expensive enough, if you do. And if you do install everything yourself, study for years is recommended (theory, location, sizing, NEC, much more).
Oh, and no government money for my utilities here. I’m not one of those high classed folks who get a fat income from government, services with government customers, etc.
The interesting part of your psot is that the “losses” by panel people has not translated into lower cost products to the conssumer. Name one place in America where folks bought because there was a company selling at bargin pricing? can’t be done. So how is it that the cost of the material is 50% of last year, but no change in install costs? enquiring minds etc. etc.
Good call, why aren’t installed costs way down?
And why is this problem so difficult for solar companies, do HP, Apple, Intel, Western Digital, etc. cry every year when the price of electronics nose dive?
..............””I question how First Solar is going to profit in that environment,” Chew said. “............
Is that Chu, as in our esteemed director of energy that parceled out all this green money, or is it some other government lackey?
No an analyst for a private sector business analysis company:
Aaron Chew, an analyst at Maxim Group, notes that those projects have locked in relatively high power rates because they were designed before panel prices had fallen so far. Chew and other analysts worry that future projects won’t be nearly as profitable and wonder whether First Solar will be able to win those big projects now that competing panels are as cheap, or cheaper.
Thanks for the correction, Chew vs Chu. I didn’t go downthread but just figured this was another fatal investment by the Zer0 govt.