UPDATE 3-GE news a headline loss for A-Power Energy; shares tank

* Q3 loss $0.02/shr matches prior yr loss

* Q3 rev down 41 pct at $57.3 million

* Cuts FY rev view by 38 pct to $310 mln vs est $473.5 mln

* In talks to buy GE stake in China JV

* Shares down as much as 28 pct
(Recasts, adds analyst comments, details; updates share)

By Krishna N Das

BANGALORE, Dec 1 (BestGrowthStock) – A-Power Energy Generation
Systems Ltd’s (APWR.O: ) woes are unlikely to end with its poor
quarterly results and full-year outlook, as the Chinese green
power company stands to lose marquee partner General Electric
(GE.N: ).

A wider third-quarter loss and a huge fall in revenue, as
well as a 38 percent cut in its 2010 revenue forecast sent the
company’s shares down by 28 percent to $4.55 — their lowest in
nearly 20 months.

About 4.6 million shares changed hands, almost five times
the stock’s moving average.

A-Power said it is in talks to buy GE China’s interest in
their joint venture that makes wind turbine gearboxes, and to
end a related supply agreement with the U.S. major.

Under their original agreement, a GE unit was to supply
A-Power with more than 900 gearboxes of 2.7-MW each.

“The GE joint venture has been kind of stamp of approval
for A-Power, they will be missing that now …. Definitely a
disappointment for the investors,” analyst Alex Morris of
Raymond James said. GE is the majority partner in the JV.

Another headwind for A-Power is the depressed wind power
market in the United States.

“As of date we do not … have any binding letters of
intent or firm orders from any purchasers of turbines in the
U.S.,” A-Power said in a statement.

A-Power, which provides power generation systems and makes
wind turbines, said its key customer Spinning Star’s inability
to secure financing for its 600-MW Texas wind farm project
continues to hurt revenue.

“The wind market is brittle. I don’t think anybody sees it
getting whole lot better any time soon, given the lack of
legislation, lower gas prices …,” Morris said.

A-Power executives, however, said on a conference call it
was only a matter of time before Spinning Star manages the
financing for the Texas project.

New U.S. wind installations were down 71 percent through
the first six months of 2010, according to the American Wind
Energy Association. Low power prices make it difficult to get
contracts that are needed to secure private financing to build
wind farms.

July-September net loss came in wider at $1 million, or 2
cents a share, while revenue fell 41 percent as fewer projects
in the quarter sent sales at its power business, which
contributes a bulk to annual turnover, down by more than 70
percent. [ID:nASA0167A]

Morris said A-Power’s adjusted profit was 5 cents a share,
while he was expecting 26 cents a share.
(Reporting by Krishna N Das in Bangalore; Editing by Maju
Samuel, Vyas Mohan)

UPDATE 3-GE news a headline loss for A-Power Energy; shares tank