* Raises FY shipments forecast to 2.9-3.1 GW from 2.7-2.9 GW
* 2nd-qtr revenue rises 53 pct to $390.5 mln vs est $394 mln
* Adj earnings $0.14 per ADS vs est of $0.21
* Operating expenses rise 72 pct
(Adds comments from the company president, analyst; updates
By Shubhankar Chakravorty
Aug 20 Chinese solar products maker JA Solar
Holdings Co Ltd expects to set up manufacturing plants
in North America next year as the United States expands
anti-dumping duties on products made in China and Taiwan.
JA Solar shares fell as much as 6.6 percent after the
company reported a lower-than-expected quarterly profit, hurt by
weak prices of modules in China and rising expenses.
The United States extended tariffs to Taiwan last month
after Chinese companies tried to sidestep the duties by moving
production to Taiwan.
"For next year we are currently variegating our overseas
production options, especially ... setting up our factories in
North America, South East Asia, for new capacity addition for
2015," JA Solar President Jian Xie said on a conference call.
ReneSola Ltd said last week it plans to expand its
production capacity through contract manufacturers in India,
South Korea, Turkey and parts of Europe.
JA Solar reported gross margins of 15.2 percent for the
second quarter, down from 16.7 percent in the first quarter,
as prices for solar modules fell in China.
The company's average selling price (ASP) for modules was 58
cents in China, which makes up 26 percent of the company's
shipments. In Japan, the ASP was 67-68 cents.
S&P Capital IQ Equity Research analyst Angelo Zino said
analysts expect a 10-15 percent decline in ASPs for the solar
industry for the rest of the year.
For JA Solar, with greater percentage swing in shipments
towards China, that's gonna hurt the margins and the ASPs, Zino
JA Solar raised its full-year total shipments forecast to
2.9-3.1 gigawatts (GW) from 2.7-2.9 GW.
The company said it expects third-quarter shipment of
730-760 MW, up from 681.8 MW it shipped in the second quarter.
Shipments of modules shot up to 445 MW in the second quarter
from 388 MW in the first quarter.
Revenue rose 53 percent to $390.5 million from a year
earlier. Analysts on average had estimated $394 million,
according to Thomson Reuters I/B/E/S.
JA Solar reported a net profit of $6.5 million, or 10 cents
per American Depositary Share (ADS), in the quarter ended June
30, compared with a loss of $21.3 million, or 58 cents per ADS,
a year earlier.
Excluding one-time items, the company earned 14 cents per
ADS, below the average analyst estimate of 21 cents.
Operating expenses rose 72 percent to $44.8 million from a
JA Solar shares were down about 5 percent at $9.53 on the
New York Stock Exchange on Tuesday.
(Reporting By Shubhankar Chakravorty in Bangalore; Editing by
Simon Jennings and Don Sebastian)