News

December 16, 2008

Solar Integrated Technologies Slides On Lower Earnings Guidance

By Rue Swabey

There are many hopes pinned on Barack Obama’s victory and his election pledge to spend US$150 billion over the next ten years on clean energy and green jobs. Mr Obama wants to increase renewable energy generation from the current eight to 10 per cent of total generation by 2012, and to 25 per cent by 2025. If the new US administration does prioritise green energy it will be positive for companies like Solar Integrated Technologies. But in the near-term the market is focusing on the impact of the credit crunch on solar developers, many of which are highly leveraged. Other concerns are the devaluation of the euro since around 70 per cent of global demand for solar products comes from Europe, and the 60 per cent drop in the oil price from its July peak which is hurting sentiment towards green energy stocks.

Solar Integrated, which is based in Los Angeles and listed on London’s Aim, manufactures and distributes commercial building integrated photovoltaic roofing systems (BIPV). Typical customers are schools, government offices, and distribution centres, the majority of which can give repeat business. In September Solar Integrated lowered its 2008 revenue guidance from a range of between US$140 million and US$160 million to a range of between US$100 million and US$120 million and pushed out its...