SunEdison sees solar power sales recovering after slump
(Reuters) - Silicon wafer maker SunEdison Inc (SUNE.N) said it expects a recovery in solar power installations during the current quarter to reverse a slump in sales that contributed to a bigger-than-expected loss in the three months ended June.
The company, formerly known as MEMC Electronic Materials Inc, said it expected adjusted solar energy system sales of 60 megawatt (MW) to 100 MW in the third quarter, compared with 51 MW in the second quarter.
"Business conditions in the second quarter remained challenging, but I am optimistic regarding our prospects for growth through the remainder of this year and into next," Chief Executive Ahmad Chatila said in a statement.
SunEdison's solar energy business designs, installs, finances and maintains solar power plants. Sales in the business fell 72 percent in the second quarter.
The company said its second-quarter results were affected by a slowdown in solar project development spending in 2012, the result of a massive drop in panel prices caused by global oversupply and the loss of solar power subsidies in Europe.
SunEdison's adjusted loss in the second quarter was 19 cents per share. Analysts on average had expected a loss of 14 cents per share, according to Thomson Reuters I/B/E/S.
The net loss widened to $102.9 million, or 45 cents per share, in the second quarter from $77.2 million, or 33 cents per share, a year earlier.
Revenue in the quarter ended June halved to $401.3 million.
However, sales at the company's semiconductor materials business rose about 3 percent to $239 million due to increased shipments and cost cuts. The unit makes wafers for semiconductor devices.
In the third quarter, SunEdison expects semiconductor materials revenue to be between $230 million and $250 million.
Shares of the company, which has a market value of $2.26 billion, closed at $9.73 on the New York Stock Exchange on Tuesday.
(Reporting By Garima Goel in Bangalore; Editing by Joyjeet Das and Robin Paxton)