News Article
Trina Solar Financial Results For The First Quarter Of 2012.
First Quarter 2012 Financial and Operating Highlights
- Solar module shipments were approximately 380 MW for the first quarter of 2012, compared to the Company's previous guidance of between 400 MW to 430 MW, representing a decrease of 10.6% sequentially
- Net revenues were $349.9 million, a decrease of 19.7% sequentially
- Gross profit was $20.3 million, a decrease of 34.7%
- Gross margin, including provisions for potential countervailing and anti-dumping duties totaling $26.2 million, was 5.8%, compared to the Company's previous guidance of low teens in percentage terms, compared to 7.1% in the fourth quarter of 2011
- Gross margin, excluding provisions for potential countervailing and anti-dumping duties, was 13.3%
- Loss from operations was $39.9 million, compared to operating loss of $62.9 million in the fourth quarter of 2011
- Operating margin was negative 11.4%, compared to negative 14.4% in the fourth quarter of 2011
- Net loss was $29.8 million, compared to net loss of $65.8 million in the fourth quarter of 2011
- Earnings per fully diluted American Depositary Share ("ADS") were negative $0.42, compared to negative $0.93 in the fourth quarter of 2011
"While we maintained relatively strong shipments in a seasonally low first quarter, continued module price declines adversely impacted our profitability despite significant cost improvements." said Jifan Gao, Chairman and Chief Executive Officer of Trina Solar. "Additionally, our first quarter benefited from shipments to the United States in connection with qualified projects under the U.S.'s 1603 Federal Grant Program."
"Though we see further signs of industry consolidation, we are addressing the challenges of the current market environment by accelerating the delivery of innovative, technology-driven products and providing differentiated service offerings."
"We were pleased to announce our successful execution and early April delivery of 500 MW of our high-efficiency Honey technology-based module capacity, which currently offers module power of up to 265 watts for rooftop applications.
Our latest advancement in Honey technology, Honey Ultra, was recently confirmed by TUV Rheinland to have reached 284.7 watts peak, which is believed to be a world record for a standard multicrystalline module 1650mm by 992mm in size. This and other technological innovations will be enhanced by the May 2012 opening of our new State Key Research Laboratory, located within our PV Park.
Further, our new TrinaSmart solution, which offers system management and enhanced output capabilities down to the module level, is undergoing advanced customer testing in preparation for its upcoming launch in the third quarter."
In the first quarter, we also announced the establishment of our fourth and fifth Sales and Project Development Offices in Chengdu and Urumqi, China, which we believe will support the growing number of scale projects we have signed initial agreements to develop."
"Lower system costs continue to drive market opportunities throughout the Americas and our market development efforts have expanded in South America, the Caribbean Islands and in Canada, where we have established a legal operating entity in Ontario. Meanwhile, in Africa and the Middle East, we are working with a growing number of local developers and utilities to supply power purchase agreement-driven projects, which are increasingly independent of traditional feed-in-tariffs.
"Finally, in the area of corporate social responsibility, we are very pleased by our recent number one overall ranking in the Silicon Valley Toxics Coalition's 2012 Solar Scorecard. We believe this reflects our increasing effort and commitment toward ensuring our role in the PV sector remains positive for the environment, our workers, and the communities in which we conduct our business."
