DuPont Ignores Solar Market Woes (Article says "bad" I say "Good for DuPont!")

[OKIsItJustMe]

http://247wallst.com/2009/03/17/dupont-ignores-solar-market-woes-dd/

DuPont Ignores Solar Market Woes (DD)

Posted: March 17, 2009 at 12:11 pm

DuPont, or EI DuPont de Nemours & Co. (NYSE: DD), has announced an initiative today that would have been cheered by investors a few months ago. The company is continuing to expand its solar operations. The problem is that the company is doing this just about every solar company in the world has discussed slowing orders and other players are reducing capacity. DuPont anticipates that the photovoltaic market will grow by double digits over the next several years.

DuPont says that it expects to nearly triple its annual photovoltaic sales to more than $1 billion in 2012. But here is the interesting part: it says that this is “based on strong fundamentals for long-term revenue growth in the photovoltaic solar energy market, combined with the company’s ability to deliver new technologies to the industry.”

The company says it can improve the lifetime and efficiency of photovoltaic modules and it is investing in greater production capability “to help keep pace with the fast rising global demand.”

It lists the current market size today as roughly $30 billion, and it is using industry estimates saying that it will increase to $70 billion by 2013. The company also stated that the growth rate for thin film is projected to be about twice as high as demand for crystalline silicon. DuPont has more than 25 years of experience in photovoltaic materials development and manufacturing and it lists more than 10 products critical to photovoltaic production.

…

I think this article demonstrates quite well just how shortsighted most business pundits are.

[phantom power]

1. Calculated risk. If they win, they improve their market share.

If they lose, they've overbuilt.

[OKIsItJustMe]

3. Personally, I think it's a growth industry for the long term

I think it's a pretty safe bet for them to make, and I think they're better able to afford to make it, than many of their smaller competitors.

[zipplewrath]

4. And could drive them out

If their right, they'll be positioned to serve the much larger market. If they're wrong, they'll be positioned to beat their competition with better economies of scale. And in this market, they can probably build, and potentially finance, for much better prices.

In any long term view, photovoltaics are only going to be an expanding market, if for nothing else but to serve more "off the grid" commercial efforts (remote/autonomous systems).

[phantom power]

5. it's a reasonable bet.

[OKIsItJustMe]

2. AP: DuPont says photovoltaic sales to triple by 2012

http://www.forbes.com/feeds/ap/2009/03/17/ap6178125.html

Associated Press

DuPont says photovoltaic sales to triple by 2012

Associated Press, 03.17.09, 02:58 PM EDT

Chemical maker DuPont Co. said Tuesday it expects to nearly triple its solar photovoltaic sales to more than $1 billion in 2012, based on solid growth in the solar energy market and the company's ability to deliver new technologies to the industry.

DuPont (nyse: DD - news - people ) said it expects the photovoltaic market to grow by double digits over the next several years, driving demand for existing and new materials that are more cost effective. The market size today is about $30 billion, and according to industry estimates, will increase to $70 billion by 2013, DuPont said.

The company's shares added 6 cents to $20.31 in afternoon trading.

…