Trina Solar Limited exceeded its target solar module shipments of 200 megawatts after deliveries reached 223 MW in the second quarter, up by 248.7 percent from 64 MW in the comparable period of 2009.
The Chinese photovoltaic panel manufacturer attributed the increase to improved brand recognition of its products in new and established solar markets, such as the United States and Australia, as well as a rise in demand for solar installations in Germany.
Trina Solar was able to generate $370.8 million in net revenues, a 147.2 percent year-over-year increase from the $150 million net revenues earned in 2009. The company also reported $118.9 million in gross profits versus $41.2 million in gross profits last year.
Gross margin increased from 27.4 percent to 32.1 percent due to the company’s lower silicon purchase price and nonsilicon manufacturing costs due to the decline in the average selling price of solar modules. Trina Solar recorded a $0.02 sequential decrease in its module and manufacturing cost, amounting to $0.74 per watt.
   |
   |
“We exceeded our previous guidance through both record shipment volumes, and despite significant Euro currency pressures, a sequential improvement in gross margin,” said Jifan Gao, chairman and chief executive of Trina Solar.
The company lost $29.2 million in foreign currency in the second quarter, which was partially offset by a gain from foreign currency forward contracts used to hedge Trina Solar’s foreign currency risk exposure.
For the third quarter, Trina Solar targets module shipments of 250 MW to 260 MW and about 30 percent overall gross margin, taking into account wafer and cell requirements outsourced to third party suppliers to meet the demand in excess of its internal capacity.
The company also raised its full year module shipment guidance to up to 930 MW from a range of 750 MW to 800 MW. It aims to reduce its manufacturing cost to $0.70 per watt by year-end through improved manufacturing efficiency and better supply chain management.
“We see increasing evidence that strong demand for our photovoltaic products will extend well into 2011, and we are currently looking into how best to manage capacity expansion to capture increasing global market opportunities,” said Mr. Gao.
Trina Solar intends to boost its annual in-house production capacity of ingots and wafers to 1 gigawatt and its cell and module capacity to 1.5 GW by the end of 2011.
