OSLO (Reuters) - Solar firm REC Silicon (REC.OL) said it expected fourth-quarter core earnings to be lower than in the previous quarter and that an ongoing trade dispute between the United States and China would hurt profits and cash flow in the short term.
The United States confirmed steep import duties on solar products from China and Taiwan earlier on Wednesday in a decision that may inflame trade tensions between the two countries.
“Changes in the availability of the Process in Trade for US solar grade polysilicon exports to China will have a negative effect on REC Silicon’s earnings and cash flows in the short term,” the Oslo-listed firm said in a statement.
REC, which manufactures silicon materials for the solar and electronics industries, expects fourth-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) between $35 million and $40 million, down from $44.9 million in the third quarter.
Reporting by Stine Jacobsen; Editing by Anupama Dwivedi