Hanwha energy’s second-quarter profits take a hit

Polaris solar PV net news: first-order PV makers hanwha energy (HanwhaSolarOne) reported that the 2014 components during the second quarter, gross profit margin, average selling prices and lower income, while shipments slightly increased.

The company reported, although shipments of components more 4.9% 339.5MW-323.6MW last quarter, but revenue was $ 178.5 million in 2014, representing a 2.7% decline in the first quarter.

However, hanwha energy had expected a second-quarter shipments of components to 350MW 370MW.

While Japan’s shipments of components (53%), Japan is still the biggest market in the second quarter, but China shipments increased, total shipments of 6% and less than 1% for the first quarter, causing component with an average selling price of us $ 0.67 per watt compared with last quarter’s slowdown was 0.69 dollars per watt.

Total gross margin for United Kingdom higher-priced markets such as impact of the sharp decline in shipments, United Kingdom 22% of the total shipments in the first quarter, but changed due to electricity price subsidy, utility grade decline, for the United Kingdom’s shipments accounted for 9% of the total shipments in the second quarter.

Therefore, gross profit margin fell to 9.5% compared with 13.9% in the previous quarter. No Japan shipments increased by 2%, interest rates will be lower. Manufacturing costs for the second quarter unchanged from the last quarter, to $ 0.59 per watt.

Hanwha energy, Chairman and CEO of nanshengyu (Seong-wooNam) says: “2014 second-quarter shipments increased, as well as our net loss decreased significantly. Our gross margin by lower average selling prices, reflecting the higher-priced EU market, in particular the United Kingdom’s sales decreased, and relatively low price to increase the proportion of the Chinese market. We maintain our Japan’s strong position and began shipments of several newer emerging markets. We will continue to maintain strict control over its operating expenses. ”

Contrary to its Chinese rival in the second quarter, United States shipments improved from the first quarter. Hanwha energy report for United States shipments accounted for 11% of the total shipments, 8% increased compared with the previous quarter.

The company noted that during the quarter, its shipments of PV modules to 23 countries, total shipments of components of 12% in Europe and Africa, the Asia-Pacific region accounted for 70% (Japan 53%), North American 18% (United States 11%).

Hanwha energy reports operating loss for the quarter of $ 6.4 million, while last quarter’s operating profit of $ 3.5 million. Net loss of $ 8.7 million.

Gross profit for the quarter of $ 16.9 million, and gross profit of $ 25.4 million in the first quarter.

Manufacturing upgrade

Hanwha energy pointed out that it is still on track to meet its 2014 is expected plans to expand manufacturing capacity, including the expansion of solar cell production to 1.5GW and module production to 2GW. Capital expenditures amounted to $ 13.6 million for the quarter, and 2014, spending will be $ 80 million.

The company also noted that it is expected by the end of the conversion efficiency of solar cells than 18%.

In view of the continuing commitment to automating its Assembly business, the company’s manufacturing costs are expected to decline from 8% to 10%.

Self-proclaimed silicon ingots and wafers significant cost reductions, will support the lower component costs later this year.

Due to the latest United States anti-dumping duties, said hanwha energy, for shipments to that country’s component, it will stop using the Taiwan solar cell.

Target

The company said, its component shipments are expected to further improve in the third quarter, is expected to ship about 400MW. Said that annual shipments target shipments to 1.5GW to 1.6GW,25% to 30% associated with sister company hanwha QCELLS component processing services, than the previous goals have not changed.

Original title: hanwha energy’s second-quarter profits take a hit

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