Canadian Solar improves third-quarter forecast

Canadian Solar on Monday raised its expected shipments as well as gross margin guidance forecast due to the completion and sales of solar plants.

The company, which plans to publish its third quarter earnings on Nov. 13, said it now expects solar module shipments to be in the range of approximately 460 MW to 480 MW, which exceeds its original guidance of 410 MW to 430 MW provided announced in August.

Canadian Solar added that it now expects revenue for the third quarter to be in the range of $470 million to $495 million and its gross margin to reach between 18% and 20% compared to its original guidance of 10% to 12%. The company said it expected a gross margin increase due "to the successful execution of its total solutions business strategy including the completion and sales of solar power plants as previously disclosed."

Canadian Solar expects to be profitable at the net income level (on a US-GAAP basis) for the three-month period as well as for the nine-month period ended Sept. 30.

Canadian Solar has announced a number of recent high-profile projects which it will supply, including the $300 million, 100 MW Grand Renewable Solar park in Ontario, Canada; a 1.78 MW plant in Saudi Arabia; and, most recently, a solar power array located in Guazhou County, in the Gansu Province of China, built by China Three Gorges New Energy. Canadia Solar is providing 100 MW of PV modules – specifically, its high efficiency 60 cell CS6P250P and CS6P-255P modules with power output of 250Wp and 255Wp.

"This agreement underscores that Canadian Solar’s brand is well recognized in the Chinese market and that we remain on track with our market diversification strategy to expand our global footprint and gain market share in important growth markets," Shawn Qu, Canadian Solar’s chairman and CEO, said last week, commenting on the project.