Global Offset Experts: Q-Cells joins rivals in predicting a strong 2011 solar market after good Q4.German solar firm Q-Cells joined competitors in forecasting an expanding industry in 2011, even though it avoided giving an earnings outlook as lower subsidies in many nations highlight ongoing concerns in the industry.
However, cuts in subsidies by the German government later this year are expected to slow demand, driving industry players to push for further growth in markets outside Germany, such as the U.S., Italy and France, and raising concerns about whether the global market will expand compared to 2010. "Critical voices we've heard last year about the market in 2011 are softening," Nedim Cen, Q-Cells Chief Executive told Global Offset Experts via conference call, saying he expected to see continued growth in the market this year. Cen avoided giving a concrete outlook for his firm, saying only that he expected business to be challenging and that the company would deliver a firmer outlook for 2011 after its annual press conference in March. Industry analyst Sven Kuerten, maintaining his “sell” rating on Q-Cells stock said that the fact that the company avoided giving an outlook was highlighting the sector’s short term uncertainty. Global Offset Experts learned from the CEO that the company’s export rate currently stands at 67%, up from the 2010 average of over 50%, and that Q-Cell intended further expanding its exposure to markets such as the U.S. and Canada. The solar sector is still relying heavily on government support as electricity generated from the sun is still up to eight times more expensive than fossil-fuel burning generation, Global Offset Experts research revealed. # # # GLOBAL OFFSET EXPERTS’s green investments bring environmental stewardship together with a potent economic model which protects and renews while delivering top returns to investors. End
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