OSLO, NORWAY: Struggling solar equipment maker Renewable Energy Corp. reported core earnings well below expectations and its fourth quarterly net loss in a row on Wednesday as average selling prices plunged.

REC has cut its output as the global solar industry is struggling with overcapacity, lower government subsidies and weakened demand as global market volatility soars.

Its average selling prices for polysilicon were down 42 per cent in October-December compared with July-September, while prices on wafers, thin slices of semiconductor material used in making solar panels, fell 31 percent and module prices were down 15 per cent.

However, after a slow start demand for solar modules improved at the very end of the fourth quarter, the Norwegian company said, adding that the overall demand outlook for 2012 was highly uncertain.

"After a steep price decline on solar modules and other components, investments in PV systems are currently yielding favorable end-user returns in a number of markets," the company said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 178 million Norwegian crowns ($30.85 million) from 1.84 billion in the same period a year ago, below the average estimate of 401 million in a Reuters poll. ($1 = 5.7704 Norwegian crowns)