* Sees FY rev less than $355 mln
* Says Sinovel refuses to accept contracted shipments
* Shares down 50 percent after market
(Rewrites lead, adds analyst quote in paragraph 6, updates
By A. Ananthalakshmi and Divya Sharma
April 5 American Superconductor Corp ,
which makes electrical systems for wind farms, said it will post
a loss in the fourth quarter, as a slowdown in China's wind
power market forced its top customer to refuse shipments.
Shares of AMSC tumbled about 50 percent in after-market
trade, after China's Sinovel Wind , the world's
third-largest wind turbine maker, refused to accept contracted
shipments of some wind turbine components.
AMSC also said it is reviewing its books after Sinovel
failed to pay for certain contracted shipments worth about $56
million, which it has already accounted for.
The company has posted a profit for eight straight quarters,
and analysts were expecting it to post a 32-cent per share
profit this quarter, according to Thomson Reuters I/B/E/S.
China's wind turbine sector, a stable source of growth for
AMSC, experienced explosive growth in the past few years aided
by hefty government subsidies. However, it is expected to be
flat in 2011.
"They (AMSC) are still going to have to remain very focused
on China, but obviously they are going to continue to diversify
to more components with this market slowing down so
significantly," Gleacher & Co analyst John Hardy told Reuters.
AMSC has been trying to diversify its customer base away
from Sinovel, which accounts for about 75 percent of its
revenue, through new wind turbine orders and emerging power grid
Last month, AMSC said it was buying smaller Finnish rival,
The Switch Engineering Oy, for $266 million to trim its
dependence on China. [ID:nL3E7EE1RA]
AMSC said it was taking actions to cut expenses as it
continues to have active discussions with Sinovel to determine
when the Chinese company would accept further shipments.
The company expects full-year revenue to be less than $355
million compared with its prior estimate of $430-$440 million.
AMSC also said full-year adjusted earnings would be well
below its previous forecast of $1.31-$1.35 per share.
(Reporting by Divya Sharma in Bangalore; Editing by Roshni