CORRECTED - CEO says Norwegian REC not afraid of subsidy cuts - report

(Corrects spelling in headline.)
In our story dated May 5, 2011 please read in the headline "CEO says Norwegian REC not afraid of subsidy cuts - report" instead of "VEO says Norwegian REC not afraid of subsidy cuts - report".
A corrected version follows:

CEO says Norwegian REC not afraid of subsidy cuts - report

(ADPnews) - May 5, 2011 - Norwegian solar group Renewable Energy Corporation ASA (OSL:REC) does not fear subsidy cuts, CEO Ole Enger said on Wednesday in an interview for online TV programme Okonominyhetene hosted by Trygve Hegnar.

"We can not continue to be subsidised and live on that," he said.

Enger commented on the group's first-quarter report, which was released yesterday, and its guidance. REC says in the report it is expecting margin pressure on modules and wafers in the second quarter, while polysilicon margins are expected to remain fairly stable.

The stock in REC was among the losers on the Oslo stock exchange in daily trading, dropping 6.79% to NOK 17.02, in the wake of the report. Enger explained the share price decline with what the company said about the second quarter of 2011. He fears that there will be overcapacity throughout the year.

Enger also said that he considered the intention of Norwegian diversified group Orkla ASA (OSL:ORK), which is a main owner of REC, to sell out the company, as completely non-problematic.

(NOK 1.0 = USD 0.188/EUR 0.127)

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