Chinese manufacturer, Trina Solar reported increased revenue and profit for 2Q08.
Trina Solar’s net revenues were $204.2 million, an increase of 69.2% sequentially and 171.1% year-over-year.
Net income was $17.1 million in 2Q08, compared
to $12.9 million in 1Q08 and $7.4 million a year
ago. Net Income of $17.1 million includes the one-time loss of $2.0
million associated with the discontinuance of the Lianyungang
polysilicon project announced in April 2008. Net Income also includes a
foreign currency exchange loss of $6.1 million.
Total shipments in 2Q08 increased to 47.57 megawatts (MW), up from 29.49 MW in the first quarter of 2008 and 20.33 MW in 2Q07.
Net margin was 8.4% in 2Q08, compared to 10.7% in the first quarter
of 2008 and 9.8% in 2Q07. The effect of the second quarter foreign
currency exchange losses and the one-time loss due to the Lianyungang
project discontinuance, net of tax effect, were approximately $0.24 and
$0.08, respectively, per fully diluted ADS.
Operating expenses in the second quarter of 2008 were $18.2 million, or 8.9% of net revenues, representing the third straight quarterly improvement as a net revenue percentage.
Based on anticipated lower polysilicon feedstock cost secured through long-term supply contracts, the Company expects that its 2009 gross margins should increase from that 2Q08, despite an anticipated decline in module average selling prices. Improved cell efficiencies and lower manufacturing costs are also expected to contribute to the Company’s gross margin improvements in 2009.
For the full year of 2008, the Company revises its projections upwards as follows:
Total net revenues to be in the range of $850 million to $900 million, compared to previous guidance of $770 million to $808 million.
Total PV module shipments between 210 MW to 220 MW, compared to previous guidance of 200 MW to 210 MW.
The Company believes gross margin to be in the range of 23% and 25% for the year and estimates operating margin will likely be in the range of 15% to 17% of total net revenues.
About Trina Solar Limited
Trina Solar Limited, through its subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of 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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