Trina Solar’s margins hit but gigawatts ship

Facebook
Twitter
LinkedIn
Reddit
Email

Major PV manufacturer Trina Solar took a hit on margins in the second quarter of 2014, while module shipments soared as China and US markets rebounded strongly.

The company actually reported shipments slightly below guidance at 943.3MW, compared to 558.0MW in the first quarter, an increase of 69.1%. Shipment to its own downstream PV projects were 148.7MW, primarily in China and the UK.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Trina Solar reported net revenue of US$519.4 million, only an increase of 16.8% from the first quarter of 2014, due primarily to softer ASPs in China, the partial impact of lowered ASPs in the US due to the preliminary US anti-dumping duties and a small increase in polysilicon prices.

Margins fell in the second quarter to 15.4%, compared to 20.6% in the first quarter of 2014, while its operating margin fell to only 3.0%, compared to 8.6% in the first quarter of 2014.

However, significantly higher shipments led to a gross profit of US$80.2 million, a 12.3% decline from the previous quarter.

Jifan Gao, Chairman and Chief Executive Officer of Trina Solar said, “In our module business, demand from both the China and overseas markets has picked up dramatically. Notably, we continue to see robust demand for our products from our many valued long-term customers in the U.S., thanks to Trina Solar's established market position and superior product offerings. Following a relatively weak first quarter in China, we saw strong growth in demand for Trina Solar's products in the second quarter.”

However, Trina Solar also benefited in the US market from having the lowest duties imposed in 2012 and 2014, compared to it rivals.

Shipment guidance

Trina Solar said that it expected module shipments in the third quarter of 2014 to be in the range of 1,060MW and 1,120MW, which management noted would be similar again in the fourth quarter of 2014.

As a result, shipment guidance for the year was reiterated at between 3.6GW and 3.8GW, of which 400MW to 500MW of PV modules would be shipped for its downstream projects.

The margin squeeze would remain through the second half of the year, though management noted in the earnings call that the reported quarter would be the lowest margins would fall this year. This was said to be due to stable pricing in China and polysilicon prices also being stable, coupled to production cost reductions and high utilisation rates for the rest of the year.

Of those 1,060 to 1,120MW of PV modules, 130 MW to 150 MW will be shipped to its downstream PV projects. Revenues will not be recognized for the modules shipped to its own developed projects as required by US GAAP. The Company expects its blended gross margin for 2014 to be at mid-teens in percentage terms with slightly lower gross margin expected for the third quarter of 2014.

The Company reiterates its 2014 guidance of total PV module shipments between 3.6GW and 3.8GW, of which 400MW to 500MW of PV modules will be shipped to the Company's own downstream projects. Revenues will not be recognized for the modules shipped to its own projects as required by US GAAP. The Company maintains its guidance of completed downstream PV projects of between 400 MW and 500 MW for the year of 2014.

Manufacturing update

Trina Solar noted that at the end of the second quarter, annualized in-house ingot production reached 2GW, while wafer capacity reached 1.6GW. Solar cell capacity had reached 2.7GW, while module capacity had reached 3.6GW.

By the end of 2014, Trina Solar reiterated capacity expansion plans that would lead to in-house ingot production capacity of 2.2GW, wafer capacity of 1.7GW and solar cell capacity reaching 3GW. PV module capacity would reach 3.8GW, effectively inline with full-year shipment guidance.

Yingli Green, Trina Solar’s nearest rival had previously guided shipments for 2014 of 4GW to 4.2GW.

Read Next

July 14, 2025
ACWA Power has signed power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) for five solar PV projects in the country.
July 14, 2025
Elements Green has secured €80 million (US$93.5 million) in financing from Danish investment firm Copenhagen Infrastructure Partners (CIP).
July 14, 2025
Solar and storage developer MN8 Energy has raised US$575 million to refinance three PV projects in North Carolina, Kentucky and Illinois.
July 14, 2025
OpenSolar has launched a new model to help US rooftop solar installers reduce costs and thrive despite the loss of the 30% IRA tax credit.
July 14, 2025
Analyst Wood Mackenzie has forecast that solar PV and wind installations in the US will be 100GW lower than expected between 2025 and 2030 with the removal of Inflation Reduction Act (IRA) incentives.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK