Yingli Green sees negative gross margins of 22-24% for Q3 2012

Nov 16, 2012 - Chinese solar product maker Yingli Green Energy Holding Co Ltd (NYSE:YGE) today said it expected to record gross margins of negative 22-24% for the third quarter of 2012, based on preliminary figures.

The company also forecast that its module shipments in the July-September period will be down 17% compared with the second quarter.

The expected gross margins reflect non-cash charges of an inventory provision and depreciation costs related to underutilised capacity, as well as a reversal of a provision for US duties. Excluding those items, the company sees its third-quarter gross margin of solar modules at between zero and 1%.

Following the final rulings by the United States International Trade Commission about Chinese solar imports earlier this month, Yingli Green expects to reverse a provision of USD 13.7 million (EUR 10.8m) for preliminary countervailing and anti-dumping duties booked in the first quarter of 2012. This is so as while the commission confirmed the duties set by the US Department of Commerce, it ruled against a 90-day retroactivity of the levies.

Yingli Green is to report third-quarter results on November 28.

(USD 1.0 = EUR 0.785)

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