The biggest maker of solar panels in the U.S., First Solar, Inc.(NASDAQ:FSLR), has reported a drastic fall in its net income due to restructuring charges and a dip in revenue due to the sharp fall in prices. The company has also lowered its outlook for the full year.
The net income was $87.9 million or a dollar a share, significantly lower than the $196.5 million or $2.25 a share earned last year in the same period. Earnings excluding items like restructuring charges are $1.27 a share, topping analysts’ estimates of $1.04. Revenue fell 17 percent to $839.1 million, compared to last year’s $1.01 billion.
For the full year, the company has revised its forecast because of some supply problems caused by the weather. It now sees revenue between $3.5 billion and $3.8 billion higher than its earlier forecast range of $3.6 billion to $3.9 billion. It expects earnings to be in the range of $4.40 and $4.70 a share; the prior estimate was between $4.20 and $4.70.
First Solar shares slumped 8.50 percent and were trading at $22.61.
US senators want Chinese bid for A123 reviewed
Two republican senators have asked U.S. Treasury Secretary Timothy Geithner to thoroughly review a Chinese company’s attempts to take over A123 Systems, Inc.(NASDAQ:AONE), the bankrupt battery manufacturer, citing protection of military technology funded by taxpayers.
China's Wanxiang Group is fighting it out with U.S. based Johnson Controls to acquire A123. Senators John Thune and Chuck Grassley want the Committee on Foreign Investment in the United States (CFIUS) to review the transaction to make sure that U.S. military and taxpayer interests are protected. A123 had earlier received a $249 million federal grant.
The senators fear that the Chinese company could access military contracts and grid storage technologies. "A123 has received millions of taxpayer dollars to develop technology and intellectual property that should not simply be shipped to China," said Thune in a statement.
Shares of AONE slumped 6% to $0.126.