Enfield solar manufacturer STR Holdings Inc. lost $2.4 million in the second quarter, as reductions in volume and price continue to plague its bottom line.
The solar encapsulant maker lost $2.4 million, or 6 cents per share, in the second quarter vs. earnings of $9.7 million, or 27 cents per share, in the second quarter 2011.
The main reason for the large profit swing stemmed from a 65 percent sales plunge from a year ago and a 2 percent price drop. STR had $25.1 million in sales in the second quarter vs. $71.7 million in the second quarter of 2011.
Thanks to its large share of the market on encapsulants – a coating that protects photovoltaic cells in solar panels – STR earnings surged in 2010 and the first half of 2011 as solar sales grew worldwide, mostly because of large subsidies in Europe and Asia.
Because of the growth of the market, more competitors enter the space and the resulting overproduction caused a decrease in volume and price moving out of STR starting in the third quarter 2011.
