China Sunergy cuts net loss to USD 10m in Q4 2014

Solar cell and module maker China Sunergy Co Ltd (NASDAQ:CSUN) on Friday said it has reduced its attributable net loss to USD 10 million (EUR 8.9m) in the closing quarter of 2014 after revenues doubled.

The result compares to losses of USD 25.6 million in July-September 2014 and USD 13.2 million in the fourth quarter of 2013.

China Sunergy’s fourth-quarter gross margin turned to positive 4.1% from a negative 3.8% in the third quarter of 2014 thanks to growing module sales to China grew, improved manufacturing efficiency, and lower conversion costs.

Revenues for the reporting period stood at USD 126.7 million, marking a 100% quarter-on-quarter jump. China Sunergy’s fourth-quarter shipments surged by 121.6% to 305.4 MW. The volume included 218.9 MW of modules and 86.5 MW of cells. In October-December 2014 China accounted for 55.6% of the company’s revenues, while Japan brought 10.1%. Europe was responsible for 26.7% of the total, mainly thanks to demand from France.

"We will continue to ramp up capacity utilization at our Turkey plant to serve the European market. We will also seek to duplicate our success in Turkey and migrate some of our existing capacities to other strategic geographies outside of China," said CEO Tingxiu Lu.

The factory in Turkey in fact has generated a third of Sunergy's 2014 revenue. The top line result for the year improved by 7.9% to USD 341.1 million and shipments amounted to 767.8 MW. China Sunergy expects to ship 900 MW to 1,000 MW in 2015.

For the whole of 2014, the company posted a USD-56.1-million net loss, as compared to a deficit of USD 50.6 million in 2013.

(USD 1.0 = EUR 0.895)

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