March 26 (Renewables Now) - US solar company SunPower (NASDAQ:SPWR) said on Thursday it is still too early to assess the impact of the coronavirus outbreak of its business but mothballed its forecast for 2020.
Last month, the solar panel manufacturer and installer guided for a GAAP net loss of between USD 195 million (EUR 178.5m) and USD 145 million for 2020, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 125 million-175 million and revenues of USD 2.1 billion-2.3 billion. It closed 2019 with a GAAP net profit of USD 22.2 million and revenues of USD 1.86 billion. Adjusted EBITDA stood at USD 97.8 million.
In an update regarding the COVID-19 situation, SunPower said that its new forecast for 2020 will be released in its first-quarter 2020 report in May.
The US firm has taken steps to lower its costs by cutting management payroll, freezing hiring and merit increases and reducing capital expenditures. Those measures are expected to help it save up to USD 50 million this year and the company currently sees itself “comfortable with its liquidity position.”
Additionally, SunPower is reviewing all discretionary spending and other programmes to further cut costs in the near term.
"We are committed to taking every action within our control to manage our business and serve our customers both now and when the industry recovers,” said Tom Werner, CEO and chairman of the board.
The separation of SunPower’s international photovoltaic (PV) cell and panel manufacturing operations into a new Singapore-based company, called Maxeon Solar Technologies, is on track to be finalised by the end of 2020’s second quarter. The company announced the move in December 2019, saying it plans to become a North America-focused distributed generation, storage and energy services company. The separation is subject to the completion of closing conditions and is pending regulatory approvals.
(USD 1.0 = EUR 0.915)