Motech Reports Record Losses Amid Fewer Losses at Solar Industry Peers

Taipei, Aug. 7, 2012 (CENS)—Solar-equipment maker Motech Industries Inc. had net loss of NT$2.23 billion (US$74.5 million at US$1:NT$30) last quarter and net loss of NT$3.22 billion (US$107 million), or NT$7.34 per share, in the first half this year, both setting record highs in the company’s history.

Although the Taiwan’s No.1 solar-cell maker saw its core-business loss improve considerably last quarter, huge loss from investment in polycrystalline-silicon maker AE, spiking materials costs and price collapse of solar-product market led to the company’s unexpectedly high loss last quarter. The company listed a total loss of NT$1.4.2 billion (US$47 million) from the investment on its first-half balance sheet.

The company’s second-quarter loss is double the loss it had in the first quarter.

The losses have returned shareholder Taiwan Semiconductor Manufacturing Co. (TSMC) with an investment loss of NT$4 billion (US$133 million).

E-Ton Solar Tech and DelSolar Co., Ltd., Motech’s industry peers in Taiwan, had much fewer net losses, losing NT$765 million (US$25.5 million) and NT$860 million (US$28.6 million) in the first half, respectively.

Totally, the three companies had loss of NT$4.85 billion (US$161 million) in the first half this year. Industry executives estimated total loss of Taiwan’s solar-product industry could top NT$10 billion (US$333 million) throughout the first six months this year, much worse than it was during the 2008 financial crisis.

Industry executives pointed out that although solar-product markets in developing economies have been consistently growing, the market recession in Europe and price collapse have eroded the growth.

In spite of more-than-expected losses, Motech executives pointed out that the company has landed more orders than its competitors in Taiwan and its capacity utilization has maintained at high levels.