Revenues and shipments up, profits down at Trina Solar for Q2 2011

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Trina Solar has posted results of its second-quarter performance, showing a healthy increase in both module shipments and year-on-year net revenue. Logging a gross profit of US$98.3 million for the quarter, which represents a decrease of 35.0% sequentially and 17.3% for the same period last year, the company cited policy changes in Italy and resulting high industry inventory as having had an effect on the company’s sales.

Trina shipped approximately 396MW of PV modules in the second quarter, representing a 77.9% year-on-year increase compared to 222.8MW in the second quarter of 2010, and increasing by over 76MW on Q1 2011. The company brought in net revenues of US$579.5 million, up 56.3% on the same period in 2010.

Gross margin was 17.0%, down from 27.5% in the first quarter of 2011 and 32.1% in the second quarter of 2010. In regard to Trina’s in-house wafer and module production, gross margin for this segment was 20.4%.

Operating income also saw a significant decrease, slipping from US$84.5 million in Q1 2011 and US$83.3 million in Q2 2010 to US$32.8 million. A similarly diminished figure was Trina’s net income for the second-quarter period, which came in at US$11.8 million, compared to US$47.7 million in the previous quarter.

As of June 30, 2011, the company had US$684.2 million in cash and cash equivalents and restricted cash and a working capital balance of US$758.1 million. Long-term borrowings came in at US$382.6 million, with total bank borrowings of US$725.6 million.

Third-quarter projection

Trina expects to ship between 480MW and 520MW of PV modules in Q3 2011. In response to increased module demand, Trina plans to build out its annualized in-house ingot and wafer production capacity to approximately 1.2GW.

Jifan Gao, chairman and CEO of Trina Solar, commented on the company’s figures and expected performance for the coming months: “In the third quarter, we expect a significant reduction in our manufacturing costs due in large part to recently completed renegotiation of the majority of our long term polysilicon feedstock and wafer agreements. We have seen substantial improvement in order pipeline from our distributors and large commercial and utility segment customers across Europe and North America. In addition to recently concluded agreements, we are also advancing discussions with new and existing customers to secure a growing number of sales agreements that extend through the second half of the year and early 2012.”

Trina has recently seen a number of orders from global customers, and has made a series of announcements including its participation in a three-year research agreement with the Australian National University (ANU) to develop high-efficiency n-type silicon solar cells with conversion efficiencies of 20% for mass production; the opening of a new sales and business development office in Sydney, Australia; receipt of the no. 2 spot for environmental and social performance as awarded by the 2011 Solar Company Scorecard; and reshuffles to its board and board committees.

28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.

Read Next

September 24, 2021
Independent power producer Catalyze has acquired commercial and industrial (C&I) solar developer Sol Alliance, expanding its presence in the northeast of the US and taking on an 80MW project development pipeline in the process.
September 24, 2021
California Governor Gavin Newsom has signed a US$15 billion package to fund programmes to tackle drought and climate change in the state
PV Tech Premium
September 24, 2021
Concerns have been raised that new measures introduced by Spain’s government to limit windfall profits of renewable energy plants could dent investor confidence and impact the stability of the country’s solar sector.
September 24, 2021
DNV-owned solar monitoring firm GreenPowerMonitor is to integrate Alteso’s solar analytics tech platform into its offering after striking a deal to acquire it.
September 23, 2021
A project that bids to combine up to 20GW of solar PV with the world’s largest energy storage battery and a 4,200km-long subsea power cable has moved a step forward after Indonesian authorities greenlit its proposed transmission cable route.
September 23, 2021
US national residential and C&I solar plant performance assessment company Omnidian has completed a US$33 million Series B raise.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021