Nov 14, 2011 - Chinese polysilicon producer Daqo New Energy Corp (NYSE:DQ) today posted a third-quarter net profit of USD 12.1 million (EUR 8.8m), down from USD 17.7 million a year ago as sales declined.
The company blamed the challenging global PV market, characterised by sluggish demand and inventory overheads, as well as the continued drop in average selling prices in the supply chain for its weaker results in the quarter.
Operating profit decreased to USD 17.1 million from USD 24 million.
Gross margin declined to 33.3% from 42.5% a year ago, mainly affected by the lower prices for polysilicon and inventory charge of USD 3.7 million.
Revenue came in at USD 59.6 million, down from USD 63.2 million, as polysilicon sales declined to USD 53 million from USD 55.2 million, although polysilicon shipments rose 5% on the year to 1,022 tonnes.
The company also shipped 1.9 MW of PV modules, additional 9.4 MW of PV modules outsourcing for customers, and 6.5 MW of wafer.
Daqo New Energy expects the market to remain weak in the near term and the prices for polysilicon to drop further. In the fourth quarter the company targets to ship 800 tonnes to 850 tonnes of polysilicon, 16 MW of wafers and 14 MW of modules.