Hanwha (HSOL) (PWER) (TSL) (LDK) (SOLR) Dragged Down by First Solar (NASDAQ:FSLR)

Hanwha SolarOne Co., Ltd. (NASDAQ:HSOL), Power-One Inc (NASDAQ:PWER), LDK Solar (NYSE:LDK), Trina Solar (NYSE:TSL) and GT Solar International (NASDAQ:SOLR) weighed down by First Solar's (NASDAQ:FSLR) dismal performance

Net income for First Solar plunged 33 percent to $116 million over the same quarter last year, as the company earned $1.33 per share. That was actually much better than the $1.16 a share analysts expected, but not able to overcome the weak net income numbers.

Revenue made no headway during the quarter either, reaching $567 million, although beating estimates of $544 million.

The company said in its press release that rising costs, lower net sales and reduced average selling prices had a negative impact on the quarter.

Even so, the company asserts it will be able to meet full year guidance, although the market, at this time, isn't buying into that. Net sales for the full year are expected to reach about $3.7 to $3.8 billion, with EPS coming in at a range of $9.25 to $9.75 a share.

All of this underscores the lack of a real market for solar energy, and is only a primarily a creation of numerous governments around the world, not the result of demand from consumers.

That's why Italy, when it cut back on subsidies, put the hurt on First Solar, which has huge exposure there.

The highly expensive and low-demand energy source can't compete in the real market, and solar companies will remain extremely volatile because many governments that support it, don't have the capital to back their ambitions in the sector.

First Solar closed Tuesday at $134.66, falling $2.87, or 2.09 percent. After hours they plunged to $123.20, down $11.46, or 8.51 percent.