First Solar Plunges as German Discounts Reduce Sales, Margins
BLOOMBERG - First Solar Inc., the world’s largest maker of thin-film solar-power modules, fell as much as 19 percent after third-quarter sales and gross margins missed analyst estimates partly because of rebates in Germany.
Tempe, Arizona-based First Solar dropped as low as $122.75 and was down $26.78, or 18 percent, to $124.80 at 9:39 a.m. in Nasdaq Stock Market composite trading. It was the biggest decline in eight months.
First Solar said yesterday that its gross margin narrowed by 5.8 percentage points to 50.9 percent in the quarter as the company began offering discounts in Germany, the world’s largest market for solar panels. The company forecast the margin will drop to 41.4 percent in the fourth quarter.
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