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Trina Solar Limited - TSL - Financial results for the third quarter of 2012

11/20/2012 11:34:09 AM

Trina Solar Limited (NYSE:TSL), a leading integrated manufacturer of solar photovoltaic products, announced its financial results for the third quarter of 2012.

TSL - Third Quarter 2012 Financial and Operating Highlights

Solar module shipments were approximately 380 MW during the third quarter of 2012, representing a decrease of 9.2% from the second quarter of 2012

Net revenues were $298.0 million, a decrease of 13.9% from the second quarter of 2012

Gross profit was $2.4 million, a decrease of 91.9% from the second quarter of 2012

Gross margin was 0.8%, compared to 8.4% in the second quarter of 2012, and included a non-cash inventory write-down totaling $13.3 million and a reversal of prior provision for anti-dumping and countervailing duties (AD/CVD) in the United States totaling $25.8 million

The Company had no incremental accounts receivables provision, compared to $44.1 million in the second quarter of 2012

Operating loss, including one-time tax and organization restructuring charges totaling $15.2 million, was $76.0 million, compared to $78.6 million in the second quarter of 2012

Operating margin was negative 25.5%, compared to negative 22.7% in the second quarter of 2012

Net loss was $57.5 million, compared to $92.1 million in the second quarter of 2012

Loss per fully diluted American Depositary Share ("ADS") were $0.81, compared to $1.30 in the second quarter of 2012 (each ADS represents 50 ordinary shares)

"Our third quarter sales were adversely impacted by the ongoing supply-demand imbalance in the global PV industry, high inventories and the irrational pricing practices by some competitors in the market," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "These factors contributed to declines in our average selling prices, despite cost improvements of our key materials. Higher historical costs of our inventory also contributed to the low gross margin and net loss in the third quarter. In response to this challenging operating environment, we focused our efforts on retaining quality customers and maximizing operating cash flow, which resulted in improvements in trade receivables and inventory balance from the previous quarter.

TSL - Third Quarter 2012 Net Revenues

Net revenues in the third quarter of 2012 were $298.0 million, a decrease of 13.9% sequentially and 38.2% year-over-year. Total shipments were 380.3 MW, compared to 418.8 MW in the second quarter of 2012 and 370.1 MW in the third quarter of 2011. The sequential decrease in shipments was caused by a continued supply-demand imbalance and the decrease in revenue resulted from the effect of this imbalance on market pricing and commercial terms.

About Trina Solar Limited - TSL

Trina Solar Limited (TSL) is a leading manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. TSL is one of the few PV manufacturers to have developed a vertically integrated business model that extends from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. Trina Solar's products provide reliable and environmentally-friendly electric power for a growing variety of end-user applications worldwide.

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