UPDATE 3-Low-margin cells weigh on JA Solar's outlook

Thu Aug 29, 2013 2:17pm EDT
 
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* Sees 3rd-quarter shipment of 450 MW to 470 MW

* 2nd-quarter shipments 463.7 MW

* 2nd-quarter net loss $0.58 per ADS vs $1.91 per ADS

* Shares fall 7 pct

By Kanika Sikka and Garima Goel

Aug 29 (Reuters) - China-based JA Solar Holdings Co Ltd's muted forecast provided little hope of ending its string of losses as a large chunk of its sales still come from low-margin solar cells.

JA Solar's shares fell as much as 7 percent on Thursday after the company forecast nearly flat shipments for the third quarter, failing to meet lofty expectations set by its rivals.

Unlike rivals, JA Solar is heavily dependant on making solar cells. Cells accounted for about 45 percent of the company's total second quarter shipments of 463.7 megawatt (MW).

Cells, which are strung together to make solar panels, fetch low prices and demand has weakened as most solar firms are producing them in-house to reduce costs. Panels, on the other hand, are more profitable.   Continued...