First Solar: Uncertain Solar Demand Is Emerging In Germany
By Jerry A. DiColo
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Thin-film solar panel maker First Solar Inc. (FSLR) said demand in one of its most important markets looks uncertain, due in part to falling prices for a competing solar panel technology.
"We basically have an uncertain picture that emerged across Q2," said First Solar Chief Executive Mike Ahearn in a conference call to discuss second-quarter earnings.
First Solar shares, which had climbed more than 10% after-hours on second-quarter results that topped expectations, gave back those gains amid more pessimistic comments on the call.
The stock was recently down 1.9% to $170.85.
Ahearn said that in Germany, First Solar is facing down aggressive prices from traditional crystalline-silicon panels, a build-up of inventory, lower installation rates and tough financing environment for projects construction.
As such, the company is planning to enact a rebate program in order to spur demand for the company's panels. The rebates would lower prices for panels in cases where financing or other factors are holding up projects.
"Cost is not a constraint in all cases," he said.
Meanwhile, First Solar left its revenue outlook for the remainder of 2009 unchanged. The company continues to expect sales of $1.9 billion to $2 billion in 2009. However, gross margins are expected to decline due to more system installation in North America and the rebate program.
