Evergreen Quarterly Loss Hits $98M
Evergreen Solar Inc. said it lost $98.1 million in the fourth quarter compared to a $53.8 million loss in the same period a year ago and a $82.4 million loss in the third quarter.
The loss is the result of $13.5 million in lost equity in the fourth quarter and $9.7 million in lost equity in the third quarter related to the company's share of losses sustained by its German partner Sovello, which has been in default of its bank loans since the end of 2008.
The default puts Sovello's German government grants at risk, and the company is in danger of insolvency, which would put further financial burdens on Evergreen.
Evergreen has taken a non-cash charge of $40.9 million to write off its remaining involvement in Sovello. The company has also taken $15.4 million in other charges related to its involvement with Sovello.
Evergreen, which is based in Marlborough and operates a massive solar panel manufacturing facility in Devens, said revenue for the fourth quarter was $74.5 million compared to $41.1 million a year ago and $77.7 million in the third quarter.
The company said its operating loss was $21.1 million compared to $51.3 million a year ago and that it shipped 31.9 megawatts of solar panels from its Devens facility during the quarter at an average selling price of $2.32 per watt while bringing its costs to its goal of $2 per watt during the quarter.
Evergreen also has a manufacturing facility in Michigan and is developing another in China, where the company says it will assemble its panels for the foreseeable future.
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