Canadian Solar Inc. said Monday that as a result of weak selling prices, it expects its third-quarter margins to be lower than previously expected.
The Canadian company said it now expects its gross margin for the quarter to be in the range of 2 percent to 5 percent, down from its previous guidance of 9 percent to 12 percent.
The news sent Canadian Solar shares down 33 cents, or 8.7 percent, to $3.46 in morning trading. The company's shares have been battered by solar industry pricing pressures in recent months and have lost 67 percent of their value since the beginning of June.
Despite the weak solar market, the company said it still expects its third-quarter shipments to total between 350 megawatts and 360 megawatts.
Canadian Solar added that demand started to return at the end of the quarter, as customers waited as long as possible before buying. In addition, the effects of the pricing pressures were made worse by a weaker-than-normal financing environment, the company said.