Trina Solar saw a more positive second quarter this year with dramatic increases in module shipments and revenue and a significant reduction in net loss compared to the first quarter of the year.
Solar module shipments were recorded at approximately 647 MW from April to June compared to 392.9 MW in the first quarter, representing an increase of 64.6%. The company recorded shipments of 418.8 MW in the second quarter of 2012.
For the third quarter of 2013, Trina expects PV module shipments between 650 MW and 680 MW. The company revised its full year 2013 PV module shipment guidance to between 2.3 and 2.4 GW from the previously expected 2 to 2.1 GW.
This quarter's shipments have exceeded Trina Solar's original guidance by more than 100 MW. Jifan Gao, Chairman and CEO of Trina Solar said, "In terms of pricing, the average selling price (ASP) of modules has stabilized, reversing the falling trend seen in previous quarters. As a result of our on-going efforts to improve operational efficiency and control manufacturing costs, we achieved continuing reductions in non-silicon costs, which contributed to quarter-on-quarter margin improvement."
The EU-China trade case had created a lot of uncertainty pertaining to PV imports from China. However Trina Solar's geographic diversification has helped in boosting its module shipment volume. Gao added, "We achieved strong sequential shipment increases in growth markets, including China, the U.S., India and Japan, which added to our stable shipments to Europe. We continue to monitor the latest developments in the trade case and are encouraged by the recent solution negotiated between the EU and China."
Cutting back losses
Trina's net revenues in the period reached $440.7 million, an increase of 69.4% sequentially and 27.4% year-over-year.
The gross profit in 2Q2013 was $51.2 million, an increase as well from 1Q2013's $4.4 million and 2Q2012's $29 million. The stabilization of the ASP of modules and decreases in costs have been cited as reasons for the sequential increase in gross margin as well which was 11.6% in 2Q2013. 1Q2013 saw a margin of 1.7%.
Trina Solar has also managed to cut back its losses. Operating loss was $23.9 million in 2Q2013 compared to $40.1 million in the first quarter. The net loss for 2Q2013 was $33.7 million compared to $63.7 million the quarter before.
Manufacturing improvements
Trina Solar continued to reduce manufacturing costs in 2Q2013, achieving a reduction of a "high single-digit in percentage terms from a quarter ago". The company says that the sequential decrease in non-silicon manufacturing costs were primarily due to improved supply chain cost control, increased utilization of the company's in-house manufacturing capacities, as well as increases in Trina Solar's module efficiencies and improvements in its manufacturing processes.
As of June 31, 2013 Trina Solar's annualized in-house ingot and wafer production capacity remained approximately 1.2 GW and its PV cell and module production capacity remained approximately 2.4 GW.
Project development
Trina Solar has also finished construction on its 50 MW project in Gansu Province, China. The project is expected to come online and commence initial production by the end of the third quarter in 2013. Gao added, "In terms of project development, we made good progress on the 50 MW power plant project in Wuwei, Gansu Province, China in the second quarter. For our downstream systems business, we remain focused on research and development and committed to delivering innovative products and solutions to lower installation costs, while enhancing the efficiencies and ease-of-use of solar energy." Trina Solar continues to source project opportunities in China as well as globally.
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