Hanwha SolarOne Narrows Losses In Second Quarter
Chinese solar photovoltaic (PV) manufacturing company Hanwha SolarOne announced its second quarter earnings on Thursday, reportedly narrowing its net loss to $8.8 million, a significant improvement on a year earlier, with shipments up 4.9%.
However, those were the only positive points from another lackluster second quarter financial earnings report from a solar PV manufacturing company.
As with Yingli Solar’s earnings, announced on Wednesday, Hanwha was pleased with its shipments, but saw lost ground on its gross profit and margin as the industry attempts to make up lost ground caused by oversupply issues amidst a manufacturing glut and political uncertainty throughout this second quarter.
“The second quarter of 2014 showed an increase in shipments and a significant reduction in our net loss position,” said Seong-woo Nam, Chairman and CEO of Hanwha SolarOne.
“Our gross margins were driven down by a lower average selling price, reflecting a decreasing proportion of sales from the higher-priced EU market, particularly the UK, and an increasing proportion from the relatively lower priced China market. We maintained our strong position in Japan and began shipments to several newer emerging markets. We continued to maintain tight control over operating expenses.”
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Hanwha SolarOne reported an operating loss of $6.4 million in Q2’14, and a net loss of $8.7 million. The company’s revenue was down 2.7% to $178.5 million from the first quarter of 2014.
The majority of shipments (53%) were to Japan, while they increased shipments to China (6%) and emerging markets, and unlike some of their Chinese rivals, Hanwha SolarOne increased their shipments to the United States, that market accounting for 11% of the total.
The full report can be viewed here, while the Q2’14 earnings call and presentation are available for download at the company’s investors section.
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