Thursday, August 14, 2008

German solar companies glowing despite Spanish woes

If you missed it, Q-cells reported earnings on Wednesday . Solarworld and Ersol solar reported today.
From Reuters:
German solar power companies cast a sunny outlook for the second half of the year despite slower growth expectations for the key Spanish market, and some lifted their guidance.
 Phoenix Solar AG (PS4G.DE: Quote, Profile, Research, Stock Buzz),
which plans, builds and operates large photovoltaic plants, said it may
exceed its current 2008targets as it expects strong demand in Germany in
the second half of 2008 and a weaker business in Spain.
 "Owing to new legislation not yet passed in Spain on feed-in tariffs and
compensation for photovoltaic electricity, the board of directors is
expecting the market to slow in the Iberian peninsula," the company said.
 Strong order intake in the first half of the year and solid earnings also
supported its optimistic outlook.
 SolarWorld (SWVG.DE: Quote), which makes everything from solar-grade
silicon to solar panels, said it expected to beat its full-year forecast
after it almost doubled consolidated net income in the second quarter to
52.4 million euros ($78.12 million).
 The world's largest solar cell maker, Q-Cells (QCEG.DE: Quote), had
raised its guidance on Wednesday on the back of strong order intake and
solid raw material supply, sending its shares higher....MORE

From Bloomberg:

Q-Cells Posts Drop in Net, Raises Forecast on Output

Q-Cells AG, Germany's largest solar company, said second-quarter profit fell 37
percent on a writedown of put option contracts. Management increased a forecast
for full-year sales on higher production.

Net income declined to 27.6 million euros ($41.2 million) from 43.6 million euros a year earlier, the Thalheim-based company said today in a statement. Earnings were hurt by an 18.1 million-euro charge as Q-Cells waived an option to sell stock in Norway's Renewable Energy Corp. AS., it said. Sales jumped 66 percent to 309.8 million euros.

Q-Cells has secured raw-materials contracts that will allow it to raise full-year output to 585 megawatts' worth of solar products, compared with an earlier-anticipated 570 megawatts, the company said. The revision led Q-Cells to increase its revenue forecast to about 1.325 billion euros this year from a previous estimate of 1.275 billion euros.

``This clearly underpins its No. 1 position in the world's solar cell market,'' WestLB AG analysts Sebastian Zank and Peter Wirtz wrote today in a note to investors. ``We see a much better sentiment coming for the stock,'' they said, increasing their rating on Q-Cells to ``buy'' from ``add.''>>>MORE