China Sunergy's shipments fall in 3rd quarter


* Company cuts full-year shipment outlook

* Shares down 13 pct in premarket trading

Nov 7 (Reuters) - Solar panel maker China Sunergy Co Ltd said its shipments fell in the third quarter, comparedwith the second quarter, due to tight credit in China that hurtits ability to procure materials for production.

China Sunergy shares fell 13 percent before the bell afterclosing at $9.49 on Wednesday.

The Chinese government has propped up loss-making solarcompanies with generous state subsidies and loans, but is nowtrying to cut excess capacity and encourage consolidation in thefragmented industry.

China Sunergy, which has not made a profit in the last 10quarters, said it shipped about 110 megawatts (MW) in the thirdquarter ended Sept. 30, down from 126.4 MW in the secondquarter.

The company also cut its full-year shipment outlook to440-480MW from 500MW-550MW.

Third-quarter gross margin is expected to be in lowsingle-digit in percentage terms, compared with gross margin of9.3 percent in the second quarter ended June 30.

However, China Sunergy reported a smaller second-quarter netloss as costs fell sharply.

The company's net loss narrowed to $1.4 million, or 11 centsper American Depositary Share (ADS), from $30.3 million, or$2.26 per ADS, a year earlier.

Cost of goods sold fell 41 percent.

Revenue dropped 33 percent to $71.8 million.

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