Daqo New Energy turns to USD-15.5m loss in Q3 2012
Nov 30, 2012 - Chinese polysilicon maker Daqo New Energy Corp (NYSE:DQ) swung to a net loss of USD 15.5 million (EUR 11.9m) in the third quarter of 2012 from a net profit of USD 12.1 million a year earlier, hit by falling prices.
Loss per fully diluted American depositary share (ADS) was USD 0.44, versus earnings of USD 0.34 in the third quarter of 2011, the company said today.
Net loss from continuing operations was USD 13.8 million, against net profit of USD 14.7 million a year back. In the reporting period, the company spun off its module manufacturing unit to Daqo Group.
Daqo New Energy saw its gross margin deteriorate to negative 51.1% from negative 20.7% in the second quarter of 2012, mainly as a result of a USD-5-million inventory writedown and the decline in average polysilicon selling prices. In the year-ago quarter gross margin was positive 33.7%.
Revenues dropped to USD 21.1 million from USD 61.2 million a year earlier. The company booked revenues of USD 19.4 million from the sale of 1,001 tonnes of polysilicon, compared to revenues of USD 53 million and polysilicon sales of 1,022 in 2011, reflecting the lower prices.
In the period, Daqo New Energy also shipped 2.4 MW of photovoltaic (PV) modules, 3.1 MW of wafers and also provided 150 tonnes ingot and block outsourcing manufacturing services to customers.
For the final quarter of the year, the company projects polysilicon shipments of 550 tonnes to 600 tonnes.