Trina Solar saw its second-quarter revenues increase over the previous quarter although sales numbers were down from the same period in 2008, while net income went back into the black compared to the first quarter. The Chinese integrated photovoltaics manufacturer shipped nearly 31% more modules in the quarter versus the preceding three months.
Trina’s net revenues in the second quarter were $150.0 million, an increase of 13.5% sequentially and a decrease of 26.5% year-over-year, due to a decline in module average selling price. Total shipments were 63.9MW, compared to 48.8MW in 1Q09 and 47.6 MW in 2Q08.
The company attributed the sequential increase in total shipments to improved demand conditions in major European markets, improved customer access to PV system purchase financings, and an increasing number of government incentive programs for solar energy projects in Europe, North America, and Asia.
Gross profit in the quarter was $41.2 million, compared to $22.7 million in 1Q09 and $47.4 million in 2Q08. Gross margin was 27.4% in the second quarter, compared to 17.2% last quarter and 23.2% in the 2Q08.
Net income was $18.9 million in 2Q09, an increase from a $10.6 million loss in 1Q09 and a $17.1 million profit in the second quarter last year, while net margin was 12.6% in 2Q09, compared to negative 8.0% in 1Q09 and 8.4% in 2Q08.
Trina estimates it will ship between 90 and 110MW of PV modules in the third quarter and 350-400MW for the year, which would represent an increase of 74% to 99% from last year.
The company’s nonsilicon manufacturing cost for its multicrystalline modules decreased approximately $0.06 to $0.73 per watt during the just-completed quarter. It expects multicrystalline modules to account for approximately 70% of its production in 2009.
The Chinese firm also reiterated expectations to reduce its manufacturing costs by 15- 20% through a combination of technology and manufacturing process improvements together with supply chain and logistics management initiatives currently under testing or development.
Through R&D and and technology transfer, the company said it continues to improve its cell production processes to meet its previously announced 2009 conversion efficiency targets of 18.5% and 17.5% for its mono- and multicrystalline commercial product lines, respectively. Based on recent on-site laboratory test production, Trina has achieved monocrystalline cell efficiencies of up to 18.6% by leveraging advanced passivation and metallization techniques involved in the PV manufacturing process.
Through yield increases achieved from improved cell and production efficiencies as well as manufacturing line enhancements, the company said it is on target to increase its annualized in-house production capacities of PV cells and modules from the current 400MW to approximately 450MW by the end of September.
Trina also expects to add approximately 150MW of additional capacity as part of its new East Campus capacity expansion, reaching a total cell and module nameplate annual capacity of 600MW by year’s end.