UPDATE 4-Solar star Q-Cells warns on sales, sector shares hit

Tue Jul 14, 2009 3:10pm BST
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* Q2 sales 142 million eur vs 225 million in Q1

* Q2 EBIT loss 62 million eur; says market still difficult

* Sees tough H2, pricing pressure to continue -CFO

* Shares down 13 percent, other solar stocks fall

* H2 recovery in doubt (Rewrites, adds CEO comments, First Solar share indication)

By Christoph Steitz

FRANKFURT, July 14 (Reuters) - Q-Cells SE (QCEG.DE: Quote, Profile, Research), the world's biggest maker of solar cells, dropped its full-year sales outlook after prices fell sharply in the second quarter, denting hopes of a recovery and sending shares across the sector lower.

Solar cell makers have been hit by a steep decline in prices for cells, mainly caused by an oversupply that built up during the boom years of 2007 and 2008.

Q-Cells Chief Executive Anton Milner told analysts on Tuesday that the second-quarter price fall was much worse than the company had expected. "Prices accelerated down in the second quarter," he said.  Continued...

 
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