Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  First Solar, Inc.    FSLR

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

First Solar Swings To 1Q Loss, Names Hughes CEO

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/04/2012 | 01:24am CET

--First Solar posts loss on $401 million of restructuring costs

--Company names James Hughes CEO

--First Solar plans to install 3 gigawatts of solar-power plants worldwide in 2016

By Cassandra Sweet and Nathalie Tadena

Of

First Solar Inc. (>> First Solar, Inc.) swung to a first-quarter loss on lower revenue and more than $400 million in restructuring costs, although the company named a new chief executive and said better days lie ahead.

First Solar's new chief executive, James Hughes, was first hired in March as chief commercial officer before being promoted to the top job. Hughes was previously chief executive of AEI, a privately held firm that owns interests in power plants in China and Latin America.

First Solar Chairman Mike Ahearn had been serving as interim chief executive since October, when former Chief Executive Rob Gillette abruptly left the company.

Despite the large write-down, First Solar raised its 2012 earnings forecast to $4 to $4.50 a share, from its prior view of $3.75 to $4.25 a share.

Shares of First Solar were recently down 0.4% at $17.99 in after-hours trade Thursday.

First Solar and its rivals have seen their profits and stock prices plunge as a global oversupply of solar panels and soft demand have sent prices tumbling. The market turmoil has driven several solar companies to file for bankruptcy, among them Solyndra LLC, which received more than $500 million in government funding.

First Solar said last month it would cut 2,000 jobs, or about 30% of its global workforce, and close its solar-panel factory near Berlin this fall as part of a restructuring. The company is also idling some of its manufacturing operations in Malaysia and said it has abandoned plans to open a factory in Vietnam. Those and other restructuring activities cost the company $401.1 million in the first quarter, erasing the 15.4% gross profit margin the company eked out in the quarter and dwarfing the previous quarter's $60.4 million in restructuring costs.

First Solar, of Tempe, Ariz., expects solar-panel production at its factories this year to total 1.4 gigawatts to 1.7 gigawatts, down from 2.4 gigawatts in 2011.

In the short term, the company is focused on completing construction of 2.7 gigawatts of solar-power plants that it has sold to NRG Energy Inc. (NRG), Berkshire Hathaway Inc.'s (BRKA) MidAmerican Energy Holdings Co. unit, Exelon Corp. (>> Exelon Corporation) and other companies. For the longer term, First Solar is looking to develop and sell new solar-power plants in countries that have a good amount of sunlight, with plans to sell 3 gigawatts of solar farms in 2016.

Company executives declined to provide details on where those projects would be located, but said First Solar is actively working on potential deals in China, India, Brazil, Peru, Chile, Central America, the Caribbean, Australia and South Africa.

"These are all markets in which we are active today and which we see long-term potential," Hughes said during a conference call with analysts.

First Solar is focused on building large solar farms, rather than smaller rooftop solar systems. Ahearn said the rooftop solar market is overly reliant on government subsidies.

"We're no longer devoting efforts to developing demand in traditional subsidy markets, including rooftop applications, simply because we do not believe these markets offer prospects for sustainable growth," Ahearn said during the conference call.

To compete better against conventional power plants, First Solar aims to cut manufacturing and development costs, increase the rate at which its panels convert sunlight into electricity, and improve power controls at its power plants so that they provide voltage support to the power grids to which they connect, rather than create a drag on grids, Ahearn said.

For the latest quarter, First Solar reported a loss of $449.4 million, or $5.20 a share, compared with a profit of $116 million, or $1.33 a share, a year earlier. Excluding the restructuring costs and other expenses, the latest quarter's loss was 8 cents a share.

Net sales were down 12% to $497.1 million, primarily due to lower average selling prices and lower volumes for sales of panels not related to the company's projects.

Analysts polled by Thomson Reuters had expected a profit of 59 cents a share and revenue of $682 million.

Shares closed at $18.07 Thursday and were halted after hours. The stock is down 87% over the past 12 months.

-By Cassandra Sweet and Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com

Stocks mentioned in the article : First Solar, Inc., Exelon Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FIRST SOLAR, INC.
12/02 FIRST SOLAR : U.S. Patents Awarded to Inventors in Michigan (Dec. 2)
12/02 FIRST SOLAR : Assigned Patent
12/01 FIRST SOLAR : gives Jordan largest solar plant
12/01 FIRST SOLAR : Environmental Law Institute Welcomes Three New Members to Its Lead..
11/26 FIRST SOLAR : Today, Van Hulzen Asset Management LLC Reached $103,000 Position o..
11/21 Solar Energy Is Cheaper Than You Think
11/21 FIRST SOLAR : Solar field plans get cloudy as Ohio manufacturer cuts workers
11/19 FIRST SOLAR : US solar panel maker to cut 1,600 jobs, halt plant in Ohio
11/18 S&P 500 MOVERS : Gps, crm
11/18 FIRST SOLAR : to cut 450 jobs at local plant
More news
Sector news : Photovoltaic Solar Systems & Equipment
11/10 SIEMENS : CEO says give Trump a chance
11/09 European renewable stocks fall on concern Trump will cut support
11/09 After StanChart and UBS, Hong Kong regulator warns of more IPO sponsor probes
10/20DJE.ON to Invest $500 Million in Illinois Wind Farm
09/28 Wind turbines firm Senvion says big merger deal not in prospect
More sector news : Photovoltaic Solar Systems & Equipment
News from SeekingAlpha
11/30 Will Solar Companies Survive The Price War?
11/29 FIRST SOLAR : Don't Be Disappointed
11/28 Crisis Of American Solar Manufacturing - The Fall Of First Solar
11/25 State Of The Top 4 Solar Module Makers
11/23 First Solar downgraded at Macquarie
Advertisement
Financials ($)
Sales 2016 2 913 M
EBIT 2016 309 M
Net income 2016 -104 M
Finance 2016 1 178 M
Yield 2016 -
P/E ratio 2016 -
P/E ratio 2017 40,91
EV / Sales 2016 0,67x
EV / Sales 2017 0,74x
Capitalization 3 133 M
More Financials
Chart FIRST SOLAR, INC.
Duration : Period :
First Solar, Inc. Technical Analysis Chart | FSLR | US3364331070 | 4-Traders
Full-screen chart
Technical analysis trends FIRST SOLAR, INC.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Average target price 34,3 $
Spread / Average Target 14%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Mark R. Widmar Chief Executive Officer & Director
Michael J. Ahearn Non-Executive Chairman
Philip Tymen de Jong Chief Operating Officer
Alexander R. Bradley Chief Financial Officer
Raffi Garabedian Chief Technology Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FIRST SOLAR, INC.-54.31%3 133
GCL SYSTEM INTEGRATION..--.--%4 340
GCL-POLY ENERGY HOLDIN..-12.82%2 445
SHANGHAI AERO AUTO ELE..-11.25%2 286
RISEN ENERGY CO.,LTD.--.--%1 552
SUNPOWER CORPORATION-77.87%919
More Results