Shares of Solar Panel Maker SolarWorld Continue to Crash
Shares of SolarWorld, which are traded on the German Stock Exchange (Ticker Symbol: SWV.DE) dropped about 11 percent on Monday morning, after the German crystalline solar power systems maker said a positive operating earnings before interest and taxes or EBIT are no longer possible in 2012.
Germany’s largest solar-panel maker, which wants Europe to investigate Chinese export tactics, blamed an aggressive market situation characterized by illegal trade practices.
The Bonn-based company reported a net loss of 161 million Euros, or $198 million, last quarter and sales dropped 36 percent in the first half from a year earlier.
The winds have picked up intensity in recent months and the industry has been hit by a dramatic price drop, resulting in sales and earnings in the first half of 2012 that leave much to be desired by SolarWorld AG.
SolarWorld will invest 50 million Euros in new products as it seeks to fight price dumping with technological innovations.
The solar industry faces oversupply, declining government subsidies and stiff competition amid charges of unfair trade practices against China, which resulted on U.S. Tariffs sought by SolarWorld on Chinese products.
SolarWorld shares traded at 1.18 Euros Monday August 13, 2012 — down from an all time high of over 66.00 Euros back in June of 2007.