China Sunergy Updates Q3 Guidance; Sees Gross Margin of -14% vs 4-5% Previous Guidance
China Sunergy Co., Ltd. (Nasdaq: CSUN) today announced updates to its guidance for the third quarter of 2011 and said it will report its financial results for the third quarter ended September 30, 2011 on Thursday, November 17, 2011, before the market opens in the United States.
For the third quarter of 2011, the Company estimates its solar module shipments to be around 115MW, compared to the Company's previous guidance of between 140MW and 160MW. The Company's overall gross margin is expected to be around negative 14%, compared to previous guidance of 4% to 5%.
The lower than expected shipments reflect the fact that market demand was weaker than expected until late in the third quarter. Industry-wide pressure on average selling prices (ASPs) and high level inventory at quarter end led to higher than expected inventory provisions and gross margins being significantly lower than previous guidance.
