Yingli, based in China, said that shipments likely declined 30 percent from the third to fourth quarters of 2011. It previously said the decline would be a "low to middle twenties percent decrease." Yingli also cut its forecast for fourth quarter profit margins due to a $35 million write-down in the value of its inventory.
The company will report its fourth-quarter financial results on Feb. 29.
Aaron Chew, an analyst with the Maxim Group, cut his expectation for Yingli's fourth-quarter results to a loss of 25 cents per share, down from a previous forecast of a 12-cent loss.
Many solar module manufacturers have struggled recently due to an influx of international competition, a weakened European economy and a glut in solar panels. Germany, the biggest market for solar panels, also is expected to cut its incentive program for solar later this year.
However, some of Yingli's peers, including Suntech Power Holdings and Canadian Solar, have actually raised their forecast for solar module shipments in the fourth quarter.
Yingli shares declined by 30 cents to $4.51 per share before the opening bell.
