Module shipments rose 69% sequentially to 943.3 megawatts in the second quarter, but gross profits were down 12.3% as gross margins fell from 20.6% in the first quarter to 15.4%. Operating margin fell sequentially from 8.6% to 3.0% and net income was down 61% to $10.3 million.
In June the company sold 8.8 million ADSs in a secondary offering at $11 per ADS and sold $150 million in convertible senior notes. The company raised $222.7 million from the two offerings.
The company was also hit with a tariff of 18.56% in June on sales of its modules in the United States. This is the lowest tariff levied on any of the Chinese solar makers, but there’s little question that it hurt Trina’s margins and profits.
Trina said that its sales had “picked up dramatically” in the second quarter, and singled out the United States as a source of “robust demand.” Now if only the margins would improve …
For the third quarter, the company expects to ship between 1,060 and 1,120 megawatts of solar modules. Trina expects blended gross margin for the full year to be in the mid-teens with third-quarter gross margin slightly lower. Total module shipments for the year continue to be forecast at between 3,600 and 3,800 megawatts.
Trina’s shares were down nearly 8% in Tuesday premarket trading, at $12.34 in a 52-week range of $8.62 to $18.77. The consensus price target from Thomson/First Call is around $18.40.
ALSO READ: JA Solar Stumbles on Falling Sales in China
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
