Published on November 26th, 2015 | by Joshua S Hill1
Yingli Green Looking Green In Face Of Preliminary Q3 Results
November 26th, 2015 by Joshua S Hill
Yingli Green Energy Holding Company is beginning to look a little green, with preliminary financial results for Q3 missing its shipping guidance for the quarter.
The Chinese-based Silicon Module Super League member published preliminary financial results for the third quarter ahead of its official earnings call on December 2. Yingli Green expects to announce net revenue for the third quarter in the range of $340 million and $350 million, in line with the company’s previous guidance for the quarter. The company’s overall gross margin is estimated to be in the range of 8% to 9%, up from 6.3% in the second quarter, thanks in part to the increase in average selling price and decrease in unit cost for PV modules.
However, Yingli Green is only expecting shipments to conclude the quarter in the range of 450 MW to 460 MW, well down on the company’s previous quarterly guidance of between 550 MW and 580 MW.
To make matters worse for the company, Yingli Green is expecting to recognize a non-cash impairment charge on long lived assets totaling $581.3 million in the third quarter.
Yingli Green has been having a tough year in 2015. In August the company confirmed reports that it had received an official notice from the New York Stock Exchange that it might be delisted due to its shares trading below the US$1.0 threshold for 20 days consecutively.
Within a month the company had to revise its full-year shipping guidance down to between 2.5 GW and 2.8 GW. The move was simply another following an increasing trend of poor quarterly performance, with shipments and revenue dropping each quarter.