November 23, 2011 / 3:44 PM / 7 years ago

UPDATE 2-ReneSola sees weak demand to continue in Q4

* Q3 loss/ADS $0.09 vs profit of $0.70/ADS year-ago

* Q3 rev $189.1 million, down about 24 pct

* Sees Q4 rev $140-$150 mln vs est $221.3 mln

* Sees 2011 solar wafer and module shipments of 1.23 GW-1.25 GW (Adds CEO comment, background; updates shares)

Nov 23 (Reuters) - Chinese solar products maker ReneSola lowered capacity utilization at its facilities as it expects weak demand to continue in the fourth quarter.

“Given the current market condition, we have temporarily lowered our capacity utilization in the fourth quarter to reduce losses from the potential future inventory write-down,” Chief Executive Xianshou Li said on a conference call with analysts.

Peers Suntech, JA Solar, LDK, Canadian Solar Inc and Hanwha SolarOne Co Ltd, took one-time charges to write down the value of their inventories, and were carefully eyeing the market and managing their factory output.

Earlier in the day, larger peer Yingli Green posted a third-quarter loss and cut its full-year photovoltaic module shipment outlook.

For the fourth quarter, the solar wafers and power products maker expects revenue of $140-$150 million.

Analysts, on average, expect the company to post revenue of $221.3 million, according to Thomson Reuters I/B/E/S.

“Oversupply and weakened demand led to substantial decreases in solar wafer and module prices, which negatively impacted our revenues and margins for the quarter,” ReneSola’s Li said in statement.

ReneSola’s net loss for the third quarter was $8.2 million, or 9 cents per American Depositary Share (ADS), compared with a profit of $60.1 million, or 70 cents per ADS, in the year-ago quarter.

Revenues dropped by about a fourth to $189.1 million.

For 2011, the company cut its capital spending budget by about 40 percent to $158 million. It expects total solar wafer and module shipments to be in the range of 1.23 Gigawatts (GW) to 1.25 GW.

Shares of ReneSola were trading down slightly at $1.14 in early trade on Wednesday. They had closed at $1.74 on Tuesday on the New York Stock Exchange. (Reporting by Divya Lad in Bangalore; Editing by Supriya Kurane)

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