The Solar Industry Suffered From Weak Demand in The Second Quarter of 2011

Despite a booming first quarter, the solar industry suffered from weak demand in the second quarter of 2011. Taiwan-based solar cell maker Delsolar has reported revenues reached NT$5, 713 million (US$197 million) and net losses NT$955 million in the first half of the year. Delsolar suffered a net loss of NT$948 million, with NT$330 million lost on material inventories. Furthermore, the net loss from the first half of 2011 has already surpassed the net profits of 2010, which were NT$435 million. According to industry sources, the solar market suffered in the second quarter due to weak demand. Market watchers predict most Taiwan-based solar cell companies that will release their financial performance for first half of 2011 are likely to post net losses. The net losses from the second quarter are likely to erode the net profits from first quarter, or even from 2010 for some solar cell makers, added industry sources. There have been fluctuations in the solar market. Negative impacts have been mostly centered on the solar cell segment due to continuous and large capacity expansions undertaken by the firms. Only mono-crystalline silicon solar products have been able to fight against the current. However, if mono-crystalline silicon solar product makers cannot effectively cut down material costs, gross margins might be subdued. Taiwan-based solar cell makers are Motech, Gintech, Neo Solar Power, Solartech, and E-Ton. Source: www. digitimes. com