(Reuters) – Struggling solar manufacturers will likely be driven into mergers with rivals to survive a sector squeeze, a trend that could draw major Asian conglomerates deeper into the renewable energy sector.
Solar makers have seen their profit margins nearly erased this year as prices for renewable energy systems plummeted by about 40 percent and industry experts say many companies are too small to withstand the downturn on their own.
By Matt Daily and Swetha Gopinath
(Reuters) – Entergy Corp (ETR.N: Quote, Profile, Research, Stock Buzz) struck a $1.78 billion deal with ITC Holdings Corp (ITC.N: Quote, Profile, Research, Stock Buzz) to exit its power transmission business, which was increasingly getting bogged down by stricter regulatory requirements and expensive infrastructure upgrades.
Shares of ITC shot up more than 7 percent to a five-year high of $81.90 on the news of the deal and the company’s plan to pay a $700 million special dividend to its own shareholders prior to the merger.
By Matt Daily
(Reuters) – American Airlines and its parent company AMR Corp filed for bankruptcy on Tuesday after failing to win a labor deal with pilots and suffering from mounting fuel costs.
AMR had been the only major U.S. carrier to avoid bankruptcy in the past decade. Its rivals used bankruptcy to restructure their labor agreements and cut costs.
By Matt Daily
(Reuters) – Chinese solar companies Suntech Power Holdings, JA Solar Holdings Co and LDK Solar Co posted larger-than-expected quarterly losses and warned the bleak sector outlook would continue well into next year.
The price of solar panels has dropped 40 percent this year as key European markets trimmed their subsidies, leaving the market awash in extra supplies and sending shares in most of the companies down more than 70 percent since 2010.
Nov 22 (Reuters) – Chinese solar companies Suntech Power
Holdings , JA Solar Holdings Co and LDK Solar
Co posted larger-than-expected quarterly losses and
warned the bleak sector outlook would continue well into next
The price of solar panels has dropped 40 percent this year
as key European markets trimmed their subsidies, leaving the
market awash in extra supplies and sending shares in most of
the companies down more than 70 percent since 2010.
Nov 7 (Reuters) – New subsidies implemented by Beijing and
fast-declining prices for solar panels could put China on pace
to match the United States’s additions of the renewable energy
source this year, acccording to a report issued on Monday by
China is likely to install 1.8 gigawatts of solar panels on
nonresidential sites this year, Solarbuzz said in new report,
in line with forecasts for the United States, which was the
world’s fourth-largest solar market last year.
(Reuters) – SunPower Corp outlined a restructuring plan to trim operating costs by up to 10 percent in 2012 and said it saw a pickup in demand across European markets such as Germany, sending its shares up 11 percent.
Sunpower, which like the rest of the industry was hit hard when top markets Germany and Italy pared generous incentives for solar power this year, on Thursday trimmed both revenue and profit forecasts for fiscal 2011.
Oct 28 (Reuters) – Chevron Corp said its quarterly
earnings more than doubled, beating Wall Street forecasts with
a big lift from oil prices, but the second-largest U.S. oil
company again nudged lower expectations for full-year output.
Growing production remains a nagging problem for all the
big oil companies, as shown by the numbers that accompanied
sharp increases in profits for Exxon Mobil Corp and
Royal Dutch Shell Plc on Thursday.
Oct 26 (Reuters) – First Solar Inc slashed its
profit forecast on Wednesday and said it would slow spending as
the industry struggles to adjust to the steep decline in the
price of solar panels.
Shares of the company, however, rose as much as 21 percent,
in a rebound from Tuesday’s selloff when the company lost about
a quarter of its value after it ousted Chief Executive Rob
(Reuters) – National Oilwell Varco Inc (NOV.N: Quote, Profile, Research, Stock Buzz), the largest U.S. oilfield equipment maker, posted higher-than-forecast quarterly profits, helped by an industry-wide move to upgrade rig fleets for tougher energy reservoirs.
The company said on Tuesday its backlog expanded along with a surge in new offshore rig building, with more than 90 orders placed in the last year.