Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading solar energy company and one of the world's largest vertically integrated photovoltaic (PV) manufacturers, which markets its products under the brand "Yingli Solar," today announced certain business updates.
Based upon preliminary data for the first quarter of 2011, Yingli Green Energy expects to report that shipment in the first quarter decreased by a low teen percentage from the fourth quarter 2010, and gross margin will be in the estimated range of 27% to 27.5%. This compares to the Company's previously provided guidance for the first quarter of 2011 that shipment would increase by mid-single digit percentage quarter over quarter and gross margin would be in the range of 30% to 31%.
For the first quarter of 2011, the Company expects a lower shipment compared to the previous quarter primarily due to the policy change in Italy. In early March of 2011, the Italian government announced that it was planning to reduce feed-in tariffs for solar power systems in an effort to impede overheating of its solar market. As the Italian government did not announce the finalized new policy until early May, the uncertainties relating to the proposed policy change led to delays in solar power projects in Italy. In addition, the severe weather conditions in Germany this past winter also had a negative effect on the market demand for solar products in the first quarter of 2011. The Company expects to deliver certain of the delayed orders in the second quarter of 2011 and estimates that shipments in the second quarter of 2011 will increase by more than 30% over the first quarter of 2011.
For the first quarter of 2011, the Company expects its overall gross margin to be in the estimated range of 27% to 27.5%, and gross margin relating to the Company's in-house module production to be approximately 30%, compared to 32.9% in the fourth quarter of 2010.
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, the Company reaffirms its PV module shipment target to be in the estimated range of 1,700 MW to 1,750 MW for fiscal year 2011, which represents an increase of 60.1% to 64.8% compared to fiscal year 2010.
The outlook for the first quarter, the second quarter and full year of 2011 reflects the Company's current estimates based on the conditions and trends known to the Company as of the date of this press release. Results are subject to changes based on further review by management and future developments of market and operating conditions.
Yingli Green Energy will announce its unaudited financial results for the first quarter ended March 31, 2011 at 8 a.m. U.S. Eastern Time on Friday, May 20, 2011, before the U.S. market opens. Dial in details for the conference call will be posted on the Investor Relations section of Yingli Green Energy's website prior to the call.
