* Q3 loss $0.02/shr matches prior yr loss
* Q3 rev down 41 pct at $57.3 million
* Cuts FY rev view by 38 pct to $310 mln vs est $473.5 mln
* In talks to buy GE stake in China JV
* Shares down as much as 28 pct (Recasts, adds analyst comments, details; updates share)
By Krishna N Das
BANGALORE, Dec 1 A-Power Energy Generation Systems Ltd's APWR.O woes are unlikely to end with its poor quarterly results and full-year outlook, as the Chinese green power company stands to lose marquee partner General Electric (GE.N).
A wider third-quarter loss and a huge fall in revenue, as well as a 38 percent cut in its 2010 revenue forecast sent the company's shares down by 28 percent to $4.55 -- their lowest in nearly 20 months.
About 4.6 million shares changed hands, almost five times the stock's moving average.
A-Power said it is in talks to buy GE China's interest in their joint venture that makes wind turbine gearboxes, and to end a related supply agreement with the U.S. major.
Under their original agreement, a GE unit was to supply A-Power with more than 900 gearboxes of 2.7-MW each.
"The GE joint venture has been kind of stamp of approval for A-Power, they will be missing that now .... Definitely a disappointment for the investors," analyst Alex Morris of Raymond James said. GE is the majority partner in the JV.
Another headwind for A-Power is the depressed wind power market in the United States.
"As of date we do not ... have any binding letters of intent or firm orders from any purchasers of turbines in the U.S.," A-Power said in a statement.
A-Power, which provides power generation systems and makes wind turbines, said its key customer Spinning Star's inability to secure financing for its 600-MW Texas wind farm project continues to hurt revenue.
"The wind market is brittle. I don't think anybody sees it getting whole lot better any time soon, given the lack of legislation, lower gas prices ...," Morris said.
A-Power executives, however, said on a conference call it was only a matter of time before Spinning Star manages the financing for the Texas project.
New U.S. wind installations were down 71 percent through the first six months of 2010, according to the American Wind Energy Association. Low power prices make it difficult to get contracts that are needed to secure private financing to build wind farms.
July-September net loss came in wider at $1 million, or 2 cents a share, while revenue fell 41 percent as fewer projects in the quarter sent sales at its power business, which contributes a bulk to annual turnover, down by more than 70 percent. [ID:nASA0167A]
Morris said A-Power's adjusted profit was 5 cents a share, while he was expecting 26 cents a share. (Reporting by Krishna N Das in Bangalore; Editing by Maju Samuel, Vyas Mohan)