The Chinese module manufacturer is estimating that its shipments for the third quarter (Q3) of 2011 will be in the region of between 372 and 375 megawatts (MW), compared to between 480 and 520 MW. The reason cited was the "deflationary" pricing environment and "challenging" financial conditions.
Meanwhile, Trina estimates that its gross margin will fall below expectations, at between 10 and 11 percent, instead of previous predictions that it would hit the high teens. This margin includes a includes a non-cash inventory write down of approximately $19 million.
"A deflationary pricing environment impacted by challenging financing conditions for some of our customer's European projects resulted in the shortfall of our targeted shipment volumes," explained Jifan Gao, chairman and CEO.
He added, however, that there is light at the end of the tunnel, with predictions that next year will see "significant" new orders secured. Specifically, he views the Americas, Asia and Africa as growth markets.
"Additionally," he said, "we have improved, and will continue to improve, our leading manufacturing efficiencies and cost structure through, among other things, renegotiations of some of our polysilicon and other key materials agreements to position us favorably going forward."
Adjusting to the market conditions, Trina has revised its full year 2011 outlook downwards. As such, instead of shipping between 1.75 and 1.8 gigawatts (GW) the company expects to ship around 1,4 GW.
A conference call will be held on November 21 to discuss the companys Q3 2011.
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: email@example.com.
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.