Germany’s Q-Cells Issues Profit Warning: "Sees No Sign Of Upturn"

Solar shares will have a tough time getting going today after the world’s largest solar cell manufacturer issued a profit warning.  It appears Germany’s Q-Cells has changed its mind.  Less than two weeks ago, a spokesman for the company said they had no plans to issue a profit warning, saying, “If Q-Cell were planning to send out a profit warning, I would have heard about it.”  What a difference 10 days makes. 

In a surprise move this morning, the company withdrew its full year revenue outlook and said it sees no signs of an upturn due to oversupply, tight credit conditions and tough competition from it’s Chinese competitors.  There was recent speculation that the recent CFO  departure had something to do with Q2 results and they may in fact be the case.  At any rate, this news doesn’t bode well for the solar sector and highlights the challenges ahead. 

Shares were trading down over 10% today.

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