First Solar Q4, 2016 results: Net sales decreased, loss per share of USD 6.92

During Q4, 2016, First Solar completed the sale of its remaining interest in the Desert Stateline PV project
During Q4, 2016, First Solar completed the sale of its remaining interest in the Desert Stateline PV project

First Solar, Inc. (Tempe, AZ, U.S.) on February 21st, 2017 announced financial results for the fourth quarter and year ended December 31st, 2016. Full-year net sales were USD 3.0 billion, and Q4, 2016 net sale totaled USD 480 million.

Net sales for the fourth quarter were USD 480 million, a decrease of USD 208 million from the prior quarter due to the completion of multiple PV systems projects during the quarter, partially offset by higher module-only sales.

 

Pre-tax charges of USD 729 million primarily related to restructuring

The Company reported a fourth quarter loss per share of USD 6.92, compared to earnings per share of USD 1.63 in the prior quarter.

The fourth quarter was impacted by pre-tax charges of USD 729 million, primarily related to previously announced restructuring actions. Restructuring related charges in the third quarter were USD 4 million.

Net income decreased versus the prior quarter as a result of lower net sales, higher restructuring charges and an increase in tax expense, partially offset by an increase in equity in earnings, the company notes.

During the fourth quarter, the Company completed the sale of its remaining interest in the Desert Stateline project and recognized USD 125 million of profit, net of tax, in equity in earnings.

“Despite the difficult restructuring decisions that we undertook in the fourth quarter, we ended the year with strong operational results,” said Mark Widmar, CEO of First Solar.

“Our best line exited the quarter running above 16.9% conversion efficiency, and for the full year our fleet averaged 16.4% efficiency, an 80 basis point improvement over the prior year. From a financial perspective we delivered full year non-GAAP earnings per share of USD 5.17, exceeding our guidance for the year. We ended the year with USD 1.8 billion of net cash and are well positioned as we move forward with our Series 6 transition.”

The Company updated its 2017 revenue guidance and now anticipates net sales of USD 2.8 billion to USD 2.9 billion (prior: USD 2.5 billion to USD 2.6 billion), and  Gross Margin in the range of 11% to 13% (prior: 12.5% to 14.5).

 

2017-02-22 | Courtesy: First Solar, Inc.; Image: Southern Power | solarserver.com © Heindl Server GmbH

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