Three Chinese solar companies, JA Solar Holdings (JASO.NASDAQ, YI12.FRA), Suntech Power (STP.NYSE, S9H.FRA) and LDK Solar (LDK.NYSE, LD41.FRA), reported third quarter losses due to slumping sales, The Wall Street Journal reported. Chinese solar firms have expanded rapidly, intensifying competition and lowering prices; however, the European debt crisis has reduced demand and constrained the amount of government subsidies in key European markets. “With the European debt crisis limiting the amount of financing available for solar power projects, we did not see the anticipated demand recovery in major European markets during the month of September,” JA Solar Chief Executive Peng Fang said. JA Solar reported a net loss of US$58.6 million, thanks to a 32% year-on-year fall in revenue. Suntech reported US$116 million in losses, citing “significantly larger-than-expected” foreign exchange volatility. LDK, one of the world’s largest solar-wafer producers, reported US$114.5 in losses following a 30% fall in sales.
Categories