Large Chinese solar manufacturers Trina Solar Limited (NYSE: TSL) and Yingli Green Energy Holding Company Limited (NYSE: YGE) both report profits for 1Q10, completing a turnaround from losses a year ago.
Despite the positive results shares of both companies fell in synch with overall market trends.
Trina nearly quadrupled shipments in the quarter, and forecasted continue growth through the end of the year–particularly in the US.
The company earned $44.5 million, or $0.66 per American depositary share (ADS) in 1Q10, compared with a loss of $11 million a year ago. Revenue increased to $336.8 million from $132.1 million in 1Q09.
Thomson Reuters reported that the results topped analysts expectations of $0.61 per ADS on revenue of $329.8 million.
Yingli Green Energy
Yingli Green Energy’s turnaround was even larger.
The company reported net income was RMB 190.9 million (US$28.0 million) in the first quarter of 2010, compared to a net loss of RMB 141.6 million in 1Q09. Earnings per ADS were RMB 1.24 (US$0.18) in 1Q10, compared to a loss of RMB 1.11 in 1Q09.
1Q10 revenues were RMB 2,449.9 million (US$358.9 million) in the first quarter of 2010, a slight decrease of 3.2% from RMB 2,530.9 million in 4Q09, but an increase of 145.0% from RMB 999.9 million in 1Q09.
The company said the slight decrease in revenues from 4Q09 was primarily due to the depreciation of the euro against the Renminbi.
The falling Euro is one of the reasons Yingli has decided to delay a decision about the company’s first US manufacturing facility.
The company is considering building a facility in Phoenix, Arizona or Austin, Texas. But European demand is expected to fall off in the second half of the year, as Germany cuts subsidies. This, too, has caused Yingli to slow down development plans in the US, according to the South Florida Business Journal.
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