The Chinese photovoltaic cell maker Hanwha SolarOne Co expects a sequential dip in average selling price in the first quarter and a rise in polysilicon costs, sending its shares down 6 percent to an eight-month low.
Hanwha, formerly Solarfun Power Holdings, expects average selling price (ASP) to fall about 5 percent in the first quarter. The company’s adjusted fourth-quarter earnings lagged estimates as ASP fell 11 percent to $1.79 per watt.
Subsidy cuts in Germany - the largest solar market - have prompted fears across the industry that prices for photovoltaic modules will decline. Italy and France are expected to follow suit.
The company, which had a customer in Europe cancelling an order in the backdrop of stricter regulations, said shipments to Germany fell 25 percent in the quarter.
“My expectation is that polysilicon market will moderate in the second half of the year,” a company executive said on a conference call. Polysilicon is used to make solar panels.
The company expects module shipments of 235-245 MW in the first quarter, up from 218.8 MW in the fourth quarter.
Hanwha SolarOne shares were trading down 3 percent at $7.54 on Thursday on the Nasdaq.
