First Solar doubles Q3 profit, lifts 2013 guidance

Nov 1, 2013 - US-based First Solar Inc (NASDAQ:FSLR) on Thursday said it had boosted its third-quarter net profit to USD 195 million (EUR 144m) from USD 87.9 million a year ago and upgraded its 2013 earnings per share (EPS) forecast.

The company now expects its EPS in 2013 to stand at USD 4.25-4.50, up from an earlier forecast of USD 3.75-4.25, while revenues are projected to range between USD 3.4 billion and USD 3.6 billion, which is below its previous estimates of USD 3.6 billion to USD 3.8 billion. Gross margin for 2013 is seen at 24%-26%, compared to the 22%-23% range given earlier.

The solar module maker and project developer earned USD 1.94 per diluted share in July-September, up from USD 1 in the same period of 2012. The result was affected by USD 56.6 million of pre-tax asset impairment charges related to the sale of the company’s non-functioning solar factory in Mesa, Arizona, unveiled earlier in October. Excluding these effects, First Solar’s diluted earnings per share (EPS) stood at USD 2.28.

Operating profit increased to USD 207.9 million from USD 107 million.

First Solar’s third-quarter sales jumped to USD 1.27 billion from USD 839.1 million in annual terms due to the contribution of the company’s 550-MW Desert Sunlight solar park in California and the sale of 50 MW of Canadian wind parks to a unit of GE Energy Financial Services and Canadian Alterra Power Corp (TSE:AXY). Increased sales volume to third-party module-only clients also contributed to the improvement. The figures marked an increase of USD 746 million as compared to the preceding quarter, helped by higher systems business project revenues.

The company closed the first nine months of 2013 with a net profit of USD 287.8 million, returning to the black after a loss of USD 250.5 million a year before. Revenues grew to USD 2.54 billion from USD 2.29 billion.

(USD 1.0 = EUR 0.737)

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