Trina Solar cuts Q3 shipment guidance and gross margin to zero

  •   Module shipments are expected to be in the range of 375MW - 385MW, compared to previous guidance of between 450MW - 480MW.
    Module shipments are expected to be in the range of 375MW - 385MW, compared to previous guidance of between 450MW - 480MW.

Financials

  • TSL
    NYSE
    10.33
    -0.60 (-5.49%)
    2:51PM EST

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.

PV-Tech Storage Promo

Newsletter

Preview Latest
Subscribe
We won't share your details - promise!

Publications

  • Photovoltaics International 25th Edition

    In this issue we offer some insights into what the next wave of photovoltaic technologies may look like as that upturn gathers pace. Industry observers have been in broad agreement that the major next-gen PV technology innovations won’t happen straight away. But there’s also little doubt that the search is now on in earnest for the breakthroughs that will come to define the state of the art in the industry in the years to come.

  • Manufacturing The Solar Future: The 2014 Production Annual

    Although the past few years have proved extremely testing for PV equipment manufacturers, falling module prices have driven solar end-market demand to previously unseen levels. That demand is now starting to be felt by manufacturers, to the extent that leading companies are starting to talk about serious capacity expansions later this year and into 2015. This means that the next 12 months will be a critical period if companies throughout the supply chain are to take full advantage of the PV industry’s next growth phase.

Partners

Acknowledgements

Solar Media