A-Power widens loss in Q3 2010, cuts full-year guidance

(ADPnews) - Dec 3, 2010 - Chinese wind turbine maker A-Power (NASDAQ:APWR) said its third-quarter net result fell short of expectations with a loss expanding to USD 1 million (EUR 757,000) from USD 600,000 a year ago, and cut its full-year outlook.

The results were hit by a decrease in revenues from the distributed power generation division and lower than expected sales in the wind power segment, chairman and CEO Jinxiang Lu said.

Operating profit slipped 63.2% on the year to USD 3.4 million mainly due to increased selling, general and administrative expenses.

Revenue dropped 40.7% to USD 57.3 million, mostly hampered by the fall in the distribution power segment revenue to USD 25.7 million from USD 90.9 million. At the same time the wind power and solar power segments booked revenues of USD 15.5 million and USD 855,000 respectively, compared to zero revenues for the year-ago period.

Gross profit margin improved to 21.5% from 13.1% a year ago with the rise in the wind power segment revenue.

A-Power reduced its full-year outlook "due to lower-than-expected wind turbine sales", expecting a net profit of USD 50 million on revenue of USD 310 million. Previously, the company guided for a net profit of USD 60 million and revenue of USD 500 million.

(USD 1 = EUR 0.756)

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