November 21, 2008 / 1:09 PM / 10 years ago

UPDATE 1-Canadian Solar sees Q4 rev well below market estimates

* Q3 EPS before items of $0.41 lags est. by $0.03

* Rev up 160 pct at $252.4 mln

* Q4 rev forecast below Street view

* Cuts FY08 revenue outlook

* To delay capital expenditures

Nov 21 (Reuters) - China’s Canadian Solar Inc (CSIQ.O) reported lower-than-expected quarterly profit, forecast fourth-quarter revenue well below market estimates and said it will delay capital expenditures temporarily to conserve cash.

The solar-cell maker, which also cut its full-year revenue outlook, expects fourth-quarter shipments to be about 20 to 25 megawatts (MW).

However, it said market and credit conditions may lead it to implement a more conservative production plan and ship only about 6 to 8 MW.

Canadian Solar forecast fourth-quarter revenue of $70 million to $85 million. This is significantly below analysts’ average estimate of $250.8 million, according to Reuters Estimates.

For 2008, the company now sees revenue of $650 million to $750 million, down from its prior forecast of $850 million to $970 million.

Canadian Solar, which is incorporated in Canada and has manufacturing plants in China, said its ingot and wafer plant will be completed to support the e-Module program, but on a more modest schedule. Phase 2 of the plant was scheduled to be completed by the end of the year.

The company also said it postponed further expansions of its cell plant past the current capacity of about 270 MW. Canadian Solar’s shares, which have fallen about 86 percent so far this year, closed at $3.78 Thursday on the Nasdaq. For the alerts, please double click [ID:nWNAB6209]. For the press release, double click [ID:nPnCNF018a] (Reporting by Hezron Selvi in Bangalore; Editing by Amitha Rajan)

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