Aug 13, 2014 - Canadian Solar Inc (NASDAQ:CSIQ) today said it had turned to a net profit of USD 55.8 million (EUR 41.8m) in the second quarter of 2014 from a loss of USD 12.6 million a year earlier as revenues rose.
Commenting on the results, chairman and CEO Shawn Qu said that second-quarter module shipments and revenue have surpassed the high end of the company’s previous forecast thanks to solid demand from Japan, Germany, the UK and the US. Canadian Solar manufactures solar photovoltaic (PV) modules both in Canada and China. It is also engaged in the construction and operation of solar parks.
The firm posted operating profit of USD 67.7 million, significantly up from the USD 12.2 million reported in the second quarter of 2013. Gross margin climbed to 19% from 12.8% a year back as a result of the implementation of Canadian Solar’s total solutions business strategy and due to higher module average selling prices (ASP) and shipment volumes.
Net revenue surged by 64% year-on-year to USD 623.8 million as total solar module shipments jumped to 646 MW from 455 MW. The company had previously projected shipments of between 600 MW and 630 MW for the quarter.
About 55.5% of net revenue was generated in the Americas, up from 37.8% in last year’s second quarter. Europe’s share was 14.7% compared to 10.6% a year earlier. Sales to Asia and other markets accounted for 29.8% of the total, down from 51.6%.