Hanwha SolarOne reports falling revenue, heavy loss in Q4 2012

In 2013 Hanwha SolarOne expects module shipments between 1.3 and 1.5 GW
In 2013 Hanwha SolarOne expects module shipments between 1.3 and 1.5 GW

Hanwha SolarOne Company Ltd. (Shanghai, China) released financial results for the fourth quarter of 2012, reporting a 14% year-over-year decline in revenues to USD 134 million, a -75% operating margin, and a net loss of USD 104 million.

Hanwha's PV module shipments, excluding module processing services, increased 5.2% year-over-year. However, the company's average selling price fell 40% to USD 0.60 per watt, well below its blended cost of goods sold of USD 0.81 per watt, which includes USD 0.17 per watt of inventory write-downs and provisions for advanced payments on long-term contracts.

“The year 2012 will be remembered as one of tremendous challenge and change for the solar industry, with significant industry overcapacity and regulatory changes in key markets leading to a slowdown in demand, accompanied by rapidly decelerating prices,” stated Hanwha SolarOne Chairman and CEO Ki-Joon Hong.

“Almost all companies, including ours, found it virtually impossible to record profitability in such an operating environment.”

“In spite of the degrading operating environment we faced, our company made significant progress in a number of areas; including bringing greater balance between our OEM model  and branded one, diversifying our sales base into new emerging growth markets, improving our non-poly processing cost structure to be competitive with industry leaders, instituted operational efficiencies at our manufacturing sites including enhanced automation, better quality, improved product features and new product introductions, and secured financing from a variety of sources both within and outside mainland China.”

 

Rebound in shipments anticipated in Q1 2013

For the first quarter of 2013, Hanwha SolarOne expects to exceed 300 MW of PV module shipments. Over the full year, Hanwha SolarOne expects module shipments between 1.3 and 1.5 GW, of which 30-35% will be PV module processing services, as well as USD 50 million in capital expenditures.

 

 

2013-03-20 | Courtesy: Hanwha SolarOne | solarserver.com © Heindl Server GmbH

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