Trina scales back FY shipment guidance20. November 2012 | Applications & Installations, Industry & Suppliers, Markets & Trends | By: Becky Beetz
Trina Solar Limited continued to suffer losses in Q3 2012 on the back of a poor Q2. For the full year, the manufacturer has revised its photovoltaic module shipment guidance downwards. It declined to offer further speculation.
While Q3 2012 net revenues were US$298 million (compared to $346 million in Q2 and $481.9 million in Q3), net loss totaled $57.5 million (compared to $92.1 million and $31.5 million in the same period).
Q3 2012 gross profit was hit hard, falling significantly from $29 million in Q2 2012 and $52 million in Q3 2011 to hit just $2.4 million. It was affected by a provision of $13.3 million for non-cash inventory write-down and a $25.8 million reversal of prior provisions related to the U.S. trade case. Meanwhile, Q3 2012 gross margin fell to 0.8%, down from 8.4% in Q2 2012, and 10.8% in Q3 2011.
Overall, Q3 2012 operating loss improved slightly from $78.6 million in Q2, to reach $76 million, but was still down on Q3 2011, which recorded an operating loss of $23.4 million. This quarter was affected by a one-time tax and organization restructuring charge totaling $15.2 million.
Operating margin was also negatively affected, having fallen from - 22.7% in Q2 2012 and - 4.9% in Q3 2011, to reach - 25.5% in Q3.
Looking ahead to Q4, Trina Solar expects to ship between 380 MW to 400 MW of photovoltaic modules. It also predicts a gross margin similar to that achieved in Q3. For the FY, it has revised its shipment guidance down from 1.75 to 1.8 GW, to 1.55 GW to 1.6 GW.
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