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|Yingli Green Energy Announces Business Updates|
Provides Updated Outlook for First Quarter 2011
Provides Shipment Guidance for Second Quarter 2011
Reaffirms Shipment Guidance for Full Year 2011
BAODING, China, May 11, 2011 /PRNewswire via COMTEX/ --
Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading solar energy company and one of the world's largest vertically integrated photovoltaic (PV) manufacturers, which markets its products under the brand "Yingli Solar," today announced certain business updates.
Based upon preliminary data for the first quarter of 2011, Yingli Green Energy expects to report that shipment in the first quarter decreased by a low teen percentage from the fourth quarter 2010, and gross margin will be in the estimated range of 27% to 27.5%. This compares to the Company's previously provided guidance for the first quarter of 2011 that shipment would increase by mid-single digit percentage quarter over quarter and gross margin would be in the range of 30% to 31%.
For the first quarter of 2011, the Company expects a lower shipment compared to the previous quarter primarily due to the policy change in Italy. In early March of 2011, the Italian government announced that it was planning to reduce feed-in tariffs for solar power systems in an effort to impede overheating of its solar market. As the Italian government did not announce the finalized new policy until early May, the uncertainties relating to the proposed policy change led to delays in solar power projects in Italy. In addition, the severe weather conditions in Germany this past winter also had a negative effect on the market demand for solar products in the first quarter of 2011. The Company expects to deliver certain of the delayed orders in the second quarter of 2011 and estimates that shipments in the second quarter of 2011 will increase by more than 30% over the first quarter of 2011.
For the first quarter of 2011, the Company expects its overall gross margin to be in the estimated range of 27% to 27.5%, and gross margin relating to the Company's in-house module production to be approximately 30%, compared to 32.9% in the fourth quarter of 2010.
Based on current market and operating conditions, estimated production capacity and forecasted customer demand, the Company reaffirms its PV module shipment target to be in the estimated range of 1,700 MW to 1,750 MW for fiscal year 2011, which represents an increase of 60.1% to 64.8% compared to fiscal year 2010.
The outlook for the first quarter, the second quarter and full year of 2011 reflects the Company's current estimates based on the conditions and trends known to the Company as of the date of this press release. Results are subject to changes based on further review by management and future developments of market and operating conditions.
Yingli Green Energy will announce its unaudited financial results for the first quarter ended March 31, 2011 at 8 a.m. U.S. Eastern Time on Friday, May 20, 2011, before the U.S. market opens. Dial in details for the conference call will be posted on the Investor Relations section of Yingli Green Energy's website prior to the call.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited (NYSE: YGE), which markets its products under the brand "Yingli Solar," is a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers. Yingli Green Energy's manufacturing covers the entire photovoltaic value chain, from the production of polysilicon through ingot casting and wafering, to solar cell production and module assembly. Currently, Yingli Green Energy maintains a balanced vertically integrated production capacity of over 1 GW per year. Two capacity expansion projects of 600 MW and 100 MW are under construction in Baoding and Hainan, respectively, which are expected to start initial production in the middle of 2011 and will increase the Company's total nameplate capacity to 1.7 GW in late 2011. In addition, Yingli Green Energy's in-house polysilicon plant, Fine Silicon, which has a designed annual production capacity of 3,000 metric tons, has successfully started commercial operation in early August 2010. Yingli Green Energy distributes its photovoltaic modules to a wide range of markets, including Germany, Spain, Italy, Greece, France, South Korea, China and the United States. Headquartered in Baoding, China, Yingli Green Energy has more than 11,000 employees and more than 10 subsidiaries and branch offices worldwide. Yingli Green Energy is publicly listed on the New York Stock Exchange (NYSE: YGE). For more information, please visit http://www.yinglisolar.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy's control, which may cause Yingli Green Energy's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy's filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
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SOURCE Yingli Green Energy Holding Company Limited