SunPower cuts earnings outlook for Q2 2011

Jul 26, 2011 - US SunPower Corp (NASDAQ:SPWRA) expects to post a net loss per share of USD 1.50 to USD 1.55 (EUR 1.035-1.069) for the second quarter to July 3, the company said yesterday.

Thus SunPower expects a loss three times higher than the earlier guided loss of USD 0.50-0.30 per share.

The photovoltaic (PV) equipment maker said the preliminary results reflect a shift in its product mix due to market conditions in Germany and policy changes in Italy. SunPower added that it booked USD 75 million in one-time pre-tax charges related to its panel relocation strategy, the acquisition offer of French oil and gas group Total (EPA:FP), and terminations of supply deals.

The company anticipates adjusted loss per share of USD 0.19-0.20 compared with USD 0.05-0.10 expected previously.

Revenue is estimated at USD 590 million-595 million, in line with SunPower's previous guidance of USD 550 million-600 million.

Adjusted gross margin is seen at 12% to 13%, compared to the earlier expected 15% to 17%.

SunPower's CEO Tom Werner said that the company succeeded in reducing its inventory levels quarter-on-quarter and had started to cancel above-market third-party cell supply contracts.

The company will disclose its second-quarter results on August 9.

(USD 1 = EUR 0.690)

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