Trina Solar, a China-based manufacturer of solar products, announced its financial results for the first quarter of 2012.
According to Trina Solar, net revenues in the first quarter of 2012 were US$349.9 million, a decrease of 19.7% sequentially and 36.5% on year. Total shipments were 380MW, lower than the firm's previous guidance of between 400-430MW. The figure shows a on-quarter decrease compared to 424.9MW in the fourth quarter of 2011 but an on-year increase 320.4MW in the first quarter of 2011. The sequential decrease in revenues was primarily due to lower total shipments combined with a decrease in module average selling price, while the on-year decrease was due primarily to lower module average selling price (ASP), said Trina Solar.
Trina solar reported gross profit in the first quarter of 2012 was US$20.3 million, compared to US$31.0 million in the fourth quarter of 2011 and US$151.3 million in the first quarter of 2011. Gross profit during the first quarter of 2012 includes provisions of US$6.9 million and US$19.3 million for potential countervailing and anti-dumping duties, respectively, relating to the import of solar modules into the US during the first quarter.
Gross margin was 5.8% in the first quarter of 2012, compared to 7.1% in the fourth quarter of 2011 and 27.5% in the first quarter of 2011, according to Trina Solar. The sequential decrease in gross margin was due primarily to anti-dumping and countervailing duty provisions offsetting reduced costs, while the on-year decrease in gross margin was due primarily to module ASP declines in excess of reduced costs, added the firm.
Trina Solar indicated the gross profit and gross margin excluding the provisions for potential countervailing and anti-dumping duties were US$46.5 million and 13.3%, respectively.
Net loss was US$29.8 million in the first quarter of 2012, a decrease from net loss of US$65.8 million in the fourth quarter of 2011 and a decrease from net income of US$47.7 million in the first quarter of 2011, added Trina Solar.
For the second quarter of 2012, the firm expects to ship between 500-520 MW of solar modules.
Trina Solar believes its overall gross margin for the second quarter, including the impact of provisions for potential countervailing and anti-dumping duties, will be approximately 10%. This figure takes into account wafer and cell requirements outsourced to third party suppliers to meet demand in excess of its internal capacity.
For the full year 2012, Trina Solar expects total solar module shipments between 2.0-2.1GW, representing an increase of 32.5-39.1%, respectively, from 2011.
