Overcapacity, "irrational" pricing of some competitors and a non-cash inventory write-down have forced Trina Solar to lower its module shipment guidance and gross margins for Q3.
Jifan Gao, Chairman and CEO of Trina Solar said: “Our third quarter sales were adversely impacted by a continued supply-demand imbalance in the global PV industry, high inventory levels and irrational pricing practices by some competitors in the market.”
Module shipments are expected to be in the range of 375MW to 385MW, compared to previous guidance of between 450MW to 480MW.
Trina Solar said in a statement that it would "confirm or revise" module shipment guidance for 2012 during its Q3 conference call on November 20, before the US stock market opens. Trina Solar had previously revised shipments of between 1.75GW and 1.8GW.
The company also said that its gross margin would be impacted by a non-cash inventory write-down and a reversal of prior provisions for anti-dumping and countervailing duties in the US. This would result in margins of between 0% and 1.5%, compared to previous guidance of margins in the middle-single digits range.