Yingli Green Energy Holding Co. (YGE) posted greater first-quarter earnings that missed expectations, as marketplace disruptions in Europe held up sales, but the business stated it would meet its full-year sales target.

Shares of Yingli had been not long ago down 7.4% at about $9.22.

A number of solar businesses have posted or warned of weaker results following a government selection in Italy, the world’s No. 2 solar industry, to cut solar power subsidies. Yingli warned last week that its first-quarter shipments would decline inside the low teens on a percentage basis, owing to a slowdown within the Italian solar market in the course of government deliberations. In March, the business predicted a midsingle-digit increase.

Yingli Chairman and Chief Executive Liansheng Miao stated that despite the sudden slowdown in European demand, the firm nonetheless expects to meet its shipment target for the year. The business still considers Europe one particular of its most significant markets because it expands its sales within the U.S., China, Southeast Asia, South America and also the Middle East.

Miao mentioned he was “growing a lot more confident” that the Chinese government is thinking about accelerating the country’s solar-power-development target to ten gigawatts by 2015 and 50 gigawatts by 2020.

“We strongly feel that China will swiftly evolve into a single from the largest and most important solar markets within the world,” Miao stated in the course of a conference call with analysts.China’s official goal continues to be to install 5 gigawatts of solar-power generation by 2015. Chinese media have reported that the government is thinking about doubling the 2015 goal.

Yingli and its rivals have already been functioning to diversify their businesses geographically from the industry’s major marketplace of Europe, where other nations also have already been cutting subsidies.

Several solar companies last year unveiled expansion plans to keep up with surging demand as the market rebounded sharply from weakness in the course of the recession. In spite of the slowdown in Europe, demand is expected to enhance inside a number of markets like the U.S., China, India and Thailand.