A-Power Energy (APWR) Pummeled After Slashing 4Q Guidance

A-Power Energy (APWR) is once again testing all time lows after taking a 25% hit today on news the company has dramatically lowered 4th quarter guidance from the previous estimate of $158 million in revenue and $15.5 million in profit to $76 million in revenue and just $5 million in profit due to postponed contracts.

Jinxiang Lu, APWR CEO, commented, “Due to the unusual current macro economic conditions, a few of our key potential contracts, which we expected to close in the fourth quarter, were postponed. As our projects are highly capital intensive, we always require a sizeable down payment as a key component of our standard contract. Under today’s environment, we believe that it is even more important to exercise prudence on customers’ payment terms and to continue to focus on our cash flow management.  Entering into 2009, we remain confident with a positive outlook for China’s wind energy market as both government and enterprises have a strong commitmentf or renewable energy development, and we maintain a leading position in the marketplace, where the barrier to enter is high. As a result, we continue to expect profitable growth in 2009.”

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