CORRECTED - China Sunergy turns to USD-9.6m loss in Q1 2012 as revenue declines

May 22, 2012 - Solar cell and module maker China Sunergy Co Ltd (NASDAQ:CSUN) today slipped to a net loss of USD 9.6 million (EUR 7.5m) in the first quarter of 2012 from a USD-3.5-million profit a year earlier hurt by a slump in revenues.

Gross margin was 1.1%, compared with 10.7% in the same period of 2011 and 0.2% in the preceding quarter. Against the backdrop of an oversupply in the industry and falling prices, revenues shrank to USD 68.5 million from USD 165.7 million a year earlier. Shipments declined to 79.9 MW from 98 MW but remained at the high end of the company's forecast for between 70 MW and 80 MW.

Chief executive Stephen Cai said that the results were in line with expectations and that gross margins were starting to recover. He added the company was being positioned for a shift in demand from western to eastern markets.

China Sunergy said it would remain in the red in the second quarter and forecast shipments of between 145 MW to 155 MW. Gross margin is seen at the mid-single-digit range of about 5%. The company also confirmed its expectation for 500 MW to 550 MW in full-year shipments.

(USD 1.0 = EUR 0.783)

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