First Solar reports higher net sales

Share

The company reported second quarter net income of $1.27 per fully diluted share, compared to a net loss of $5.20 per fully diluted share in the first quarter of 2012, and net income of $0.70 per fully diluted share in the second quarter of 2011. Q2 2012 was impacted by pre-tax charges of $36 million (reducing EPS by $0.39), relating to restructuring and certain costs in excess of normal warranty.

Based on reductions in First Solar's ongoing cost structure related mainly to restructuring initiatives, the company increases its 2012 guidance to:

  • Net sales of $3.6-$3.9 billion, compared to prior guidance of $3.5-$3.8 billion; and
  • Earnings per fully diluted share to $4.20-$4.70, compared to prior guidance of $4.00-$4.50, in each case excluding restructuring and impairment charges, and certain costs in excess of normal warranty expense.

In a conference call this week, CFO Mark Widmar said that some of the Malaysia and Perrysburg lines will continue to idle and be updated. He added that for the second half of the year, in response to higher demands, First Solar will increase production and run its plants at 90 percent capacity utilization.

Widmar added that the company's net debt decreased by $345 million from the end of the first quarter primarily due to repaying outstanding balances of its German facility agreement and repaying a portion of their revolving line of credit. "First Solar is in a strong financial position currently to navigate the current market turbulence," Widmar stated.

First Solar's CEO, Jim Hughes said the global market remains in an oversupply situation. With the bankruptcy announcements and subsidy cuts in European markets, the company is taking a new strategy path for sustainable growth and moving to emerging markets as well. This will take some time to develop. Hughes added, "Sustainable markets are those with the fundamental need for energy and where public budgetary financing in the form of subsidies or other incentives are not required to create demand."

First Solar has also started to execute on such strategies. The company aims to capture 30 percent market share in Australia where the utility scale PV market is taking off. First Solar has already announced plans with AGL to develop 159 MW in Australia. It is also actively bidding on other projects. In India, First Solar is expecting to win 20 percent of the market. It is also establishing a local presence in these markets.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Share

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.