NewEnergyNews: WORLD SUN MAKERS CLOSE DOWN, PLAN BOUNCE BACK

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    Founding Editor Herman K. Trabish

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    Research Associate and Contributing Editor Jessica R. Wunder

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    Sunday, January 15, 2012

    WORLD SUN MAKERS CLOSE DOWN, PLAN BOUNCE BACK

    December 2011 Ends the Year with Negative Growth, Small-scale Revenue Increase Hopeful for January 2012
    2012 January 13 (Energy Trend)

    "…[D]ue to both weak demand and limited demand boost from the rush order transfers from China...sales figures of December 2011…[show the year ended] with a negative growth. Most manufacturers have kept the inventory level under control, and thus are unwilling to accept orders that might further jeopardize the gradually stabilizing prices…[I]ncreasing demand for high efficiency products has led manufacturers, when accepting orders, to evaluate the likelihood of selling both high efficiency and low efficiency products…

    "January is a traditional low season for the solar industry…[L]imited orders from China…[due to (1) stocking, and (2) re-directed OEM orders from clients seeking alternative sources to evade tax impositions from anti-dumping investigations and anti-subsidy provisions] could not make up for much of January revenues…"


    click to enlarge

    "…[A]lthough the price may seem to be stabilizing for a rebound, the end market demand plays a critical role…[O]rder visibility remains relatively low and European and North American markets’ demand momentum slowed in December due to subsidy cuts and expiration of cash grants. As a result, most manufacturers are attempting to adjust production levels…[P]rice and volume are not expected to increase dramatically in the short term…[but revenues will] experience slight increase in January 2012 due to lower relative base numbers in December 2011.

    "December is the last chance for manufacturers to window-dress financial statements…[T]he critical matter at hand is whether the business operation can endure the downturn within reasonable losses and to survive until the market condition improves…"

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