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Due to release second quarter results in only a couple of weeks, Trina Solar has significantly lowered its shipment guidance due to US market weakness after countervailing and anti-dumping duties were imposed as well as a push-out of unidentified PV power plant projects in China to the second-half of the year. Trina Solar said that PV module shipments would be in a wider range of 390MW to 420MW, down from 500MW to 520MW.
"An overcapacity-induced deflationary pricing environment caused the shortfall in gross margin," commented Jifan Gao, chairman and CEO of Trina Solar. "Shipment volume fell short of our targets as US market uncertainty on the preliminary impact of the tariff resulted in stagnant demand in North America and the timing of several large projects in China was pushed to the second half of 2012. Amidst these market conditions, we strived to maintain reasonable gross profits."
Trina Solar said that it would incur a non-cash inventory write-down in the range of US$26 million to US$28 million in the second quarter, due to both price declines and imposed US duties on Chinese-made solar cells.
Financial results would also be impacted to the tune of between US$45 million and US$48 million due to accounts receivables issues with unidentified customers as well as a foreign currency exchange loss between US$22 million to US$23 million.
The company said that it would confirm or revise 2012 shipment guidance of between 2 to 2.1GW during its second quarter 2012 earnings conference call on August 21.