ReneSola's Q1 2011 net profit more than triples Y/Y

(ADPnews) - Apr 28, 2011 - Chinese photovoltaics (PV) maker ReneSola Ltd (NYSE:SOL) net profit more than tripled to USD 43.3 million (EUR 29.2m) in the first quarter of 2011, from USD 11.8 million in the same period of the previous year.

Operating profit surged 256.6% on the year to USD 75.6 million.

Revenue increased 58.9% to UDS 328.2 million, meeting the company's expectations.

Solar product shipments rose 36.3% to 330.4 MW, exceeding the outlook. Wafer shipments increased 7.3% to 243.5 MW and module shipments 86.9 MW, compared to 15.4 MW for the year-ago period.

ReneSola's CEO Xianshou Li said the company faced a drop in module average selling prices but wafer pricing was strong and cost-cutting initiatives enabled it to achieve gross margin of 30.7%.

For the second quarter ReneSola guides for solar product shipments of 330 MW-350 MW, revenue of USD 280 million-300 million and gross profit margin of 25%-27%.

The company also plans to spend USD 350 million this year to boost wafer production capacity from 1.3 GW to 1.9 GW, module production capacity from 400 MW to 600 MW, and polysilicon production capacity from 3,500 tonnes to 8,500 tonnes.

(USD 1.0 = EUR 0.673)

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