Trina Solar Limited (NYSE: TSL), a china-based manufacturer of solar photovoltaic products saw its share prices fall roughly 25% last week after reporting profit increases that fell short of analysts’ predictions.
Shares of the company had risen more than 150% for the year due to increased demand for its solar modules, and gross profit for Q307 was up 95.4% from Q306 to $16.6 million.
However, shares were down $12.28 to $36.60 before the Thanksgiving Holiday. By midday Monday, the price had recovered only slightly to $37.42.
The company reported total net revenues of $82.6 million for Q307, an increase of 155.2% from Q306. In addition, the company says solar module shipments increased to 21.15 MW from 20.33 MW in Q207 and up 164.0% from 8.01 MW in Q306.
Mr. Jifan Gao, Trina Solar’s Chairman and CEO, “We are pleased with our results during the third quarter of 2007. As we prepared for capacity increases to come on line during the fourth quarter, we benefited from higher average sales price while further demonstrating our strong sales and marketing capabilities in both existing and new markets. In addition, during the quarter we commenced in-house test production of both multicrystalline ingots and wafers, and we fully reduced our monocrystalline wafer production thickness from 220 to 200 microns thickness in line with our stated goals to expand capacity while reducing costs as a vertically integrated solar PV manufacturer.”
According to Trina, revenues for the nine months ended September 30, 2007 increased 164.6% over the same period in 2006, to $200.4 million. Gross profit increased 91.8% over the same period in 2006, to $40.3 million, yielding a gross margin of 20.1%, compared to a gross margin of 27.8% for the same period in 2006.
The company reported net income for the nine months of $19.2 million, an increase of 144.8% over the same period in 2006.
About Trina Solar Limited
Trina Solar Limited, through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a manufacturer of PV modules. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules.
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