Tier 1 PV module manufacturer Trina Solar has reported revenue of US$298 million, down 13.9% compared to the previous quarter.
The company indicated that Q4 2012 module shipments would be flat to slightly up at between 380-400MW, compared to Q3 2012 shipments reported as 380MW.
Trina Solar also revised down full-year shipment guidance to between 1.55GW to 1.6GW, compared to previous guidance of 1.75GW to 1.8GW.
The company made a net loss in the quarter of US$57.5 million, compared to US$92.1 million in Q2 2012.
Jifan Gao, Chairman and CEO of Trina Solar, said: “Our third quarter sales were adversely impacted by the ongoing supply-demand imbalance in the global PV industry, high inventories and the irrational pricing practices by some competitors in the market. These factors contributed to declines in our average selling prices, despite cost improvements of our key materials.
“Higher historical costs of our inventory also contributed to the low gross margin and net loss in the third quarter. In response to this challenging operating environment, we focused our efforts on retaining quality customers and maximizing operating cash flow, which resulted in improvements in trade receivables and inventory balance from the previous quarter.”
Gross margin was reported at 0.8%, compared to 8.4% in Q2, due primarily (4.5% impact) to inventory write-downs in connection with the decreasing average selling price of modules.
With market conditions expected to remain unchanged, Trina Solar guided gross margin for Q4 to close to that of Q3.