Trina Solar Announces Estimated Second Quarter Results; Follow-on Public Offering Of 4,500,000 American Depositary Shares
Trina Solar Ltd. announced the following selected estimated financial results for the quarter ended June 30, 2009. For the second quarter 2009, the company estimates: total shipments of approximately 63 to 65 MW of PV modules, compared to the company’s previous guidance of 60 to 65 MW, an increase of 29.1 to 33.2% from the first quarter of 2009 and an increase of 32.4 to 36.6% from the second quarter of 2008.
Total net revenues were approximately $148 million to $152 million, an increase of 12.0 to 15.1% from the first quarter of 2009 and a decrease of 25.6 to 27.5% from the second quarter of 2008. Gross margin was approximately 26.0 to 28.0%, compared to the company’s previous guidance of 18 to 20%, and an increase from 17.2% in the first quarter of 2009 and 14.3% in the second quarter of 2008. Operating margin will be approximately 11.5 to 13.5%, compared to 5.2% in the first quarter of 2009. Operating income in the second quarter includes an approximately $5 million write-off of accounts receivable due to the uncollectibility of such amount from one of the company’s customers based in Germany.
"We are pleased with our results during the second quarter, which we believe reflect Trina Solar’s brand being recognized increasingly for its quality and performance by both our customers and their lenders," said Jifan Gao, Chairman and CEO of Trina Solar. "Our improved operating performance reflects a steady improvement in the global solar marketplace and a supportive regulatory environment, and supports the strength of our business model, as the overall cost of solar energy declines and the cost of ownership falls."
Through yield increases achieved from improved cell conversion efficiency rates, improved production efficiencies and manufacturing line enhancements, the company states that it is on target to increase its annualized in-house production capacities of PV cells and modules from the current 400 MW to approximately 450 MW by the end of September 2009. Furthermore, the company expects to increase approximately 150 MW of additional capacity as part of its new East Campus capacity expansion initiative, achieving a total annualized cell and module production capacity of 600 MW by the end of 2009.
In July 2009, the company borrowed approximately $80 million in loans due on June 30, 2010 from a domestic bank to support its East Campus capacity expansion project. The loans bear an average annual interest rate of 5.23%, payable monthly, and are dominated in Euros, U.S. dollars and Renminbi. The loans are expected to become a part of a five-year project financing arrangement that the company is finalizing with domestic banks.
The company also announced that its follow-on public offering of 4,500,000 American depositary shares, or ADSs, each representing 100 ordinary shares of the company, was priced at $28.75 per ADS. Trina Solar has granted the underwriters a 30-day option to purchase up to an additional 675,000 ADSs. Trina Solar intends to use the net proceeds from the offering to repurchase up to $30 million of its 4.00% convertible senior notes due 2013 and to fund facilities expansion and other general corporate purposes.
