Major PV module manufacturer, Trina Solar, has lowered first quarter shipment guidance and expects gross margins to be as low as 1%.
Trina Solar said that it expected module shipments to be in the range of 390MW to 400MW, down from previous guidance of between 420-430MW. The company did not say why the shipment levels could be lower than previously guided.
Yet the company noted that quarterly results would be impacted by an accounts receivables provision reversal of between US$10.5 million to US$11.5 million as well as a foreign currency exchange loss between US$18.5 million to US$19.5 million, net of changes in fair value of derivative instruments.
However, in early March the EU forced all Chinese modules imported in to the EU to be registered ahead of the anti-dumping investigation, which has since resulted in reported duties exceeding 30% and as high as nearly 70%.
Distributors and project developers were reluctant to purchase modules after that date or possibly cancelled orders that would enter the EU after the registration period began. Though late in the first quarter, Trina Solar like other Chinese producers could have been impacted by the EU move.
Trina Solar also guided that that overall gross margin would be 1-3%, in line with previous guidance of “low single digits”, in percentage terms.
The company said it would update full-year guidance at its conference call at the end of May, should there be an impact on previous guidance of shipments between 2-2.1GW.