The third-quarter (Q3) net profit of US thin-film solar module maker First Solar Inc (NASDAQ:FSLR) almost halved as revenues declined 19% and operating expenses grew 37% on the year.
The company reported on Thursday a net profit of USD 30.6 million (EUR 27.6m) for July-September 2019 compared to USD 57.8 million a year back. The table below gives more details about First Solar’s financial performance during the period.
| Figures in USD million, except percentages |
Q3 2019 |
Q2 2019 |
Q3 2018 |
| Net sales |
546.8 |
585 |
676.2 |
| Gross margin (%) |
25.3 |
13.2 |
19.1 |
| Total operating expenses |
97.1 |
85.8 |
70.7 |
| Operating profit (loss) |
41.3 |
(8.6) |
58.5 |
| Net profit (loss) |
30.6 |
(18.5) |
57.8 |
Year-to-date bookings stand at 5.4 GW direct current (DC). The company also recognises 8.1 GW DC of mid-to-late stage opportunities.
For the full year, First Solar maintained its net sales, earnings and shipment guidance, while raising other projections. It now expects a gross margin of 19% to 20%, up from 18.5% to 19.5% previously, and an operating profit of USD 320 million-370 million, instead of USD 290 million-340 million. Operating expenses, in turn, are seen in the range of USD 350 million to USD 370 million versus the prior forecast for USD 360 million to USD 380 million.
Also on Thursday, First Solar announced the start of production at its second Ohio PV module factory, located in Lake Township, thus boosting its total annual manufacturing capacity in the US to 1.9 GW DC and once again becoming the largest solar manufacturer in America and the Western Hemisphere. The ramp-up at the new site is expected to be concluded by end-March 2020.
The Perrysburg and Lake Township factories in Ohio now both produce First Solar’s Series 6 modules, thereby brining the company's nameplate capacity for that particular technology up to 5.5 GW. According to CEO Mark Widmar, the company has produced a record 1 GW of Series 6 modules during the quarter thanks to continually improving capacity utilisation, throughput and yield.
The company’s expanded production footprint in the US represents more than USD 1 billion in cumulative investment, including USD 265 million for a transparent conductive oxide (TCO) coated glass factory that is being built by the NSG Group in Troy Township, Ohio.
(USD 1.0 = EUR 0.900)
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Manufacturing Series 6 modules at the Lake Township factory in Ohio. Source: First Solar Inc
