Suntech and JinkoSolar suffer mounting losses

Suntech Power Holdings (STP.NYSE) and JinkoSolar Holding Co (JKS.NYSE) became the biggest solar companies to record large impairment charges, as the entire industry faces growing losses from weak demand and price cuts, Reuters reported. Along with other solar panel producers, Suntech faced non-cash, impairment charges of US$482.9 million while JinkoSolar lost US$7.3 million in the fourth quarter. More writedowns for solar companies may be in store this year as a result of reduced profitability, predicted Jeff Osborne, an analyst at Stifel Nicolaus. Possible US tariffs may further decrease profitability for Chinese solar companies, which have been accused of dumping equipment in the US market. Suntech and JinkoSolar shares have lost 69% and nearly 75% of their value over the past the last year, respectively. Analysts expect this to be the first year in five that Suntech fails to gain market share.