SunPower Corp. on Thursday posted a third-quarter loss on large write-downs, and it gave a disappointing outlook for full-year earnings and revenue.
The solar panel maker also announced a restructuring plan designed to cut costs by up to 10 percent next year, and said its chief financial officer would leave the company in March and another
top official will leave this month.
The company's shares fell in extended trading after the financial results and restructuring moves were announced.
Solar panel prices have been declining for years, hurting the profits of solar manufacturers, but the industry's problems have worsened this year with a reduction in incentives for solar power in Europe, especially Germany and Italy. Germany was the world's largest market for solar power.
CEO Tom Werner said, "our fourth quarter performance will reflect slower than anticipated demand growth."
SunPower said full-year revenue would be $2.40 to $2.45 billion, less than the $2.79 billion that analysts surveyed by FactSet were expecting. It forecast full-year adjusted earnings between a loss of 5 cents and a gain of 20 cents per share. Analysts were expecting income of 73 cents per share.
For the third quarter, the company's net loss widened to $370.8 million, or $3.77 per share. That compared with a profit of $20.1 million, or 21 cents a share, in last year's third quarter.
The most recent results included $350 million in charges to write down assets and goodwill. Without those and other items, the company said it would have earned 16 cents per share. On that basis, analysts expected 6 cents per share.
Revenue rose 28 percent to $705.4 million from $550.6 million, but fell short of analysts' target of $713.7 million.
The company announced several executive changes. CFO Dennis Arriola will leave in March; and the president of residential and commercial business, Jim Pape, will leave this month. Others will change jobs and duties, including Chief Operating Officer Marty Neese, who will get expanded responsibilities.
The company said it would launch a restructuring program in the fourth quarter to speed up cost-cutting moves and reduce operating expenses by up to 10 percent next year while also growing the company.
SunPower said it might incur a one-time, pretax charge of about $10 million, which was not included in the outlook for the rest of 2011.
Its shares fell 51 cents, or 5.8 percent, to $8.25 in extended trading following the announcements.