JA Solar (JASO.NASDAQ) posted profits that beat analyst estimates while competitor Trina Solar (TSL.NYSE) cut its quarterly sales forecast, Reuters reported. The divergent performance shows the uncertain ground the Chinese solar industry finds itself on as European countries cut back on subsidies for solar power. Last week Italy pared back its subsidy regime which had made it the second-largest market for solar power after Germany, and the industry is concerned there is an oversupply of solar modules that will put pressure on margins and profits. Both JA Solar and Trina said cuts in Italy had hurt sales, but maintained their full-year forecasts, increasing the pressure on them to find other sources of revenue in the second half of the year. Foreign solar power companies are also feeling the strain. US-based Energy Conversion Devices (ENER.NASDAQ) announced its eighth consecutive quarterly loss yesterday and will cut one-fifth of its workforce to reduce costs. JA Solar’s strong performance was attributed to rigorous cost control. Last week state media reported that the central government had doubled its target for installed photovoltaic power to 10,000 megawatts by 2015.
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