Solar company shares down on JA Solar 4Q loss
Shares of a number of solar companies sank Monday after JA Solar Holdings Co.'s fourth-quarter loss widened because of weak global demand for solar products.
Solar panel prices have tumbled since the Chinese government pushed hundreds of small players into the industry. New companies still sprung up in 2011 even after Western countries, hammered by the global crisis, cut subsidies. Supplies continued to grow and sales slowed, forcing sellers to slash prices to unprofitable levels.
JA, a Chinese solar company, on Monday reported a loss for the period of RMB 637.9 million ($102.4 million), or RMB 16.50 ($2.65) per American depository shares, compared with a loss of RMB 429.6 million, or RMB 12.25 per ADS, in the same quarter last year. Each ADS represents five ordinary shares. Revenue fell 14 percent to RMB 1.67 billion from RMB 1.95 billion in the year-ago period.
The company said that its results continued to be pressured throughout 2012 by tough market conditions, forcing it to cut prices.
JA shares dropped 46 cents, or 11 percent to $3.70 in afternoon trading.
Shares of LDK Solar Co. fell 3.3 percent to $1.18. Yingli Green Energy Holding Co. Ltd. shares fell 9.7 percent to $1.96. First Solar Inc. shares fell 3 percent to $28. And Trina Solar Ltd.'s shares sank 11 percent to $3.46.