Outlook Dims for Evergreen Solar and LDK
May 16 2011 - 7:16AM
Marketwired
Earnings season has been mixed for the solar industry, while first
quarter profits and sales were strong, there is plenty of
uncertainty heading into the summer months. Many solar heavyweights
warned that shipments will drop in the upcoming months, citing
concern in Italian policy changes. The Bedford Report examines
investing opportunities in the Solar Industry and provides research
reports on Evergreen Solar, Inc. (NASDAQ: ESLR) and LDK Solar Co.
(NYSE: LDK). Access to the full company reports can be found at:
www.bedfordreport.com/2011-05-ESLR
www.bedfordreport.com/2011-05-LDK
Italy's solar sector has surged since 2007, when generous
production incentives were launched. On the downside, Italy
approved a decree earlier this month that cuts spending on generous
solar power incentives. Under the new solar decree, a transitional
period with gradual cuts in incentives will start from June 1, 2011
and run to 2013, after which the incentives will automatically be
linked to reaching a certain level of installed capacity. The
decree aims to cap subsidies for solar developers at between $8.92
billion and $10.41 billion per year by the end of 2016.
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LDK was one of the first solar companies to warn of possible
shipment shortfalls in the current quarter. For the first quarter
of 2011, LDK Solar expects to report revenue in the range of $745
to $755 million, as opposed to its prior guidance of revenue
between $800 and $850 million
Evergreen Solar is one of the biggest laggards in the solar
sector. Shares of the company plummeted last week after the company
said it was unsure whether it will be able to continue its business
due to liquidity concerns. The company said its survival depends on
obtaining additional financing from third parties and a successful
restructuring of at least a substantial portion of its debt.
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