American Superconductor Gets Stiffed By Big Chinese Customer, Stock Hammered
MarketNewsVideo.com , 04.06.11, 12:15 PM EDTShares of American Superconductor tank as the company warns that fourth quarter results will be less than forecast.
Shares of American Superconductor are plunging today following the company's warning that fourth quarter results would be less than previously forecast after the company's main customer, Sinovel Wind, refused March shipments of wind turbine components.
American Superconductor ( AMSC - news - people ) said it believes Sinovel refused the shipments so it could reduce inventory.
As a result, AMSC said total revenues in the fourth fiscal quarter will be less that $42 million, resulting in a net loss on a GAAP and an adjusted basis.
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Full-year revenues will be less than $355 million, the company said, compared to a prior forecast of $430 million to $440 million.
AMSC said it is in discussion with Sinovel to determine when it plans to accept further shipments, and in the meantime will take action to reduce expenses. Media reports estimated that Sinovel accounts for as much as three-fourths of American Superconductors business.
The company competes with firms like ABB ( ABB - news - people ) and Satcon Technology in producing wind turbine components.
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