Nov 20, 2012 - Chinese photovoltaic (PV) products maker Trina Solar Ltd (NYSE:TSL) today posted a third-quarter net loss of USD 57.5 million (EUR 44.9m), widening from USD 31.5 million a year ago as revenue and gross margin contracted.
Yet, net loss narrowed from USD 92.1 million in the April-June quarter of 2012.
Operating loss expanded from USD 23.5 million to USD 76 million, including one-time tax and organisation restructuring charges of USD 15.2 million.
Gross margin plunged to 0.8% from 10.8% a year earlier, mainly hit by lower average selling price of modules that offset reductions in their cost.
July-September revenue decreased 38.2% on the year to USD 298 million, although total shipments climbed to 380.3 MW from 370.1 MW. "Our third quarter sales were adversely impacted by the ongoing supply-demand imbalance in the global PV industry, high inventories and the irrational pricing practices by some competitors in the market," said Trina Solar chairman and chief financial officer Jifan Gao.
Trina Solar guides for fourth-quarter module shipments of 380 MW to 400 MW and gross margin similar to the one in the third quarter. The company downgraded its full-year module shipments forecast to 1.55 GW-1.6 GW from 1.75 GW-1.8 GW expected earlier.