Evergreen Solar (ESLR) Loss Widens, Warns Of Margin Hit

Evergreen Solar Inc (ESLR.O: Quote, Profile, Research, Stock Buzz) on Thursday reported a wider quarterly loss.  It blames that on the cost of opening new production facility.  Its forecasting third quarter results will be lower than analysts estimates.  Shares are down 9.4 percent.  It is also warning that margins will be hot for the rest of the year as it is trying to increase the capacity.

In a statement, Evergreen said it recorded costs of $11.3 million in the quarter for the start-up of its new plant in Devens, Massachusetts.

“As a result of typical inefficiencies that companies incur in the initial stages of significant capacity changes, our gross margin will be impacted for the remainder of the year, but will return to at least 30 percent in early 2009,” Evergreen Solar Chief Executive Richard Feldt said.

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