First Solar, Inc.(NASDAQ:FSLR) announced that it is planning to cut cost through massive layoffs and to reshuffle processes to emphasis on fresher solar units that will lead to at least $500 million in charges and shove the company into the red this year.
The latest shakeup, was unveiled in reply to big price drops and lesser demand in China. The process will comprise close to 1,600 dismissals out of the company’s 6,000 workforces in the around the world.
To account for the changeover to the latest modules along with hesitation over the new administration’s energy and tax policies, Company’s CFO Alexander R. Bradley said in a conference call with analysts that 2017 manufacturing is expected to decrease to 2.2 gigawatts.
Moreover, company officials shrunk their 2020 solar target in China to 9 gigawatts, from 20 gigawatts, to account for further expected demand drop in that country.
Considering the shakeup and asset-impairment charges, valued at $500 million to $700 million, First Solar now expects a loss of $2 to $4 a share for the year, but elevated its adjusted profit forecast by 30 cents to a range of $4.60 to $4.80 a share.
For 2017, it expects break-even to 50 cents a share of adjusted profit on $2.5 billion to $2.6 billion in revenue. Meanwhile Analysts are predicting an adjusted profit of $1.94 a share on roughly $3 billion in revenue.
Deliveries, projected at 2.8 gigawatts to 2.9 gigawatts this year, are poised to drop to a range of 2.4 gigawatts to 2.6 gigawatts in 2017, furthermore spending on capital projects is likely to almost double to a range of $525 million to $625 million.
Moreover First Solar (FSLR) CFO, Mr. Bradley also said that 2018 will be a transition year as First Solar surges production of the Series 6 modules in the second half of the year, aiming about 3 gigawatts of Series 6 production in 2019.