News Article
Trina Solar Announces Fiscal Year 2011 Results
Trina Solar Limited, an integrated manufacturer of solar PV products has announced its financial results for the fourth quarter and fiscal year 2011.
Full Year 2011 Results Financial and Operating Highlights
"¢ PV module shipments were approximately 1.51 GW, compared to the Company's previous guidance of approximately 1.4 GW, an increase of 43.1% from 2010
"¢ Total net revenues were $2.05 billion, an increase of 10.2% from 2010
"¢ Gross profit was $332.6 million, a decrease of 43.1% from 2010
"¢ Gross margin was 16.2%, compared to 31.5% in 2010
"¢ Operating income was $31.0 million, compared to $417.3 million in 2010
"¢ Net loss for the full year was $37.8 million, a decrease of 112.1% from 2010
"¢ Earnings per fully diluted ADS for 2011 were negative $0.54, compared to $4.18 in 2010
"We achieved notable sequential shipment growth in the fourth quarter as we expanded sales in our existing major and newer emerging markets. Despite this achievement, growth in worldwide module capacity and peaked channel inventory resulted in significantly lower product prices which adversely affected our bottom line results, whereby our cost reduction was not sufficient to offset lower ASPs." said Jifan Gao, Chairman and Chief Executive Officer of Trina Solar. "Most notably, as a result of our diversified sales by region, revenue outside Europe exceeded fifty-percent of global sales for the first time in our history.
"We finished 2011 with annual shipment growth of approximately 43% over 2010. We believe that our broader geographic sales mix will better position us for future growth in both sales and income as expected price stabilization is realized.
"We will continue our focus on combining innovative products and manufacturing efficiency to respond to and anticipate customer's needs by extending service offerings and integrating our technology developments into improved end-user solutions. For our U.S. customers, we recently launched a fully-integrated solution that encompasses in-house design services, our recently-commercialized high performing 'Honey' modules and Trinamount, which saves time on the installation process to lower total system costs.
"Despite challenges facing the market, we expect the global solar industry to experience long-term growth and that further consolidation will occur among the smaller solar companies in the next few years. We maintain our position as a top-tier and renowned manufacturer of high quality solar products. Our recent ISO14064-1:2006 verification from the British Standards Institute is evidence of our commitment to lead the PV industry in sustainable development.
"Lastly, with installed PV systems becoming increasingly affordable, we see evidence of increasing solar demand in markets less dependent upon government support or utility rate premiums. The cost of solar power compares favourably against other alternative energies, such as wind, and is now below user-paid rates for an increasing number of markets and user categories. We believe this positive trend represents a great opportunity for our company and the solar industry in the future."
