China Sunergy on track to return to profitability in 2Q09

Nanjing, China-based solar cell manufacturer China Sunergy (Nasdaq:CSUN) said today it expects to return to profitability in the second quarter, according to Thomson Reuters. The announcement sent its shares up 12 percent to close at $5.55.

The company’s quarterly solar cell shipments have also slightly surpassed estimates of 35 megawatts to 40MW.

Analysts surveyed by Thomson Reuters currently expect China Sunergy to post a loss of 15 cents a share. The company, which had previously expected low single-digit margins in the second quarter, said it now expects gross profit margins to be about 9 percent.

The company plans to report actual second-quarter results in late August.

In the first quarter, China Sunergy reported a negative gross margin of 23.7 percent, impeded by declining average selling prices and its inventory of high-cost wafers.

In June, China Sunergy announced its first partnership in Italy, a six-year 53-MW sales framework agreement, including 3 MW to be delivered this year, with Renergies Italia, a solar module manufacturer based in Urbisaglia, Italy (see China Sunergy partners with Italian solar manufacturer).

Read the article »