Trina Solar (NYSE:TSL)

Third Quarter 2011 Results

Second Quarter 2011 Results

• Net revenues were $579.5 million, an increase of 5.2% sequentially and 56.3% year-over-year
• Net income was $11.8 million, compared to net income of $47.7 million in the first quarter of 2011 and $38.7 million in the second quarter of 2010
• Earnings per fully diluted American Depositary Share ("ADS") were $0.17, compared to $0.63 in the first quarterof 2011 and $0.52 in the second quarter of 2010

CHANGZHOU, China, August 2, 2011 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, announced today the following updates to its previous guidance made for the quarter ended June 30, 2011.

Despite achieving record shipment volumes in the second quarter, the Company estimates its solar module shipments in the second quarter to be in the range of 395 MW to 397MW, compared to the Company's previous guidance of 430 MW to 450 MW for the reasons discussed below.

Additionally, for the second quarter 2011, the Company estimates:

- Gross margin relating to its in-house wafer production and module production to be approximately 20%, compared to the Company's previous guidance of in the mid 20s in percentage terms; and

- Overall gross margin to be in the range of 17.0% to 17.5%, compared to the Company's previous guidance of in the low 20s in percentage terms.

"While shipment volumes in the second quarter were our highest ever, sales were adversely impacted by extended slower demand and high industry inventory due in part to recently issued regulatory revisions and reduction in solar subsidies in Italy," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "We expect a significant improvement in production costs and an increase in shipment volumes in the third quarter."

CHANGZHOU, China, July 8, 2011 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, announced holders of the Company's 4.00% Convertible Senior Notes due 2013 (the "Securities") have the right to surrender their Securities for purchase by Trina Solarpursuant to the terms of the indenture for the Securities (the "Option"). The Option expires on August 4, 2011.

The Option entitles each holder of the Securities to require the Company to purchase, on August 5, 2011, all or any part of such holder's Securities at a price equal to the principal amount plus accrued and unpaid interest.Trina Solar will pay the purchase price solely with cash. Holders that do not surrender their Securities for purchase pursuant to the Option will maintain the right to convert their Securities, subject to the terms, conditions and adjustments applicable to the Securities.

The opportunity to surrender Securities for purchase pursuant to the Option will terminate at 5:00 p.m., New York City time, on August 4, 2011. In order to exercise the Option, a holder must follow the procedures set forth in the notice to holders. Holders may withdraw any Securities previously surrendered for purchase at any time prior to 5:00 p.m., New York City time, on August 4, 2011.

Trina Solar will file a Tender Offer Statement on Schedule TO for the Securities with the Securities and Exchange Commission. In addition, documents specifying the terms, conditions and procedures for surrendering and withdrawing Securities for purchase, including the notices to holders, will be available through The Depository Trust Company and the paying agent. Neither Trina Solar nor its Board of Directors or employees have made or are making any representation or recommendation as to whether or not any holder should surrender any Securities.

First Quarter Results:

• Net revenues were $550.9 million, a decrease of 14.2% sequentially and an increase of 63.5% year-over-year
• Gross profit was $151.3 million, a decrease of 25.0% sequentially and an increase of 45.1% year-over-year
• Gross margin was 27.5%, compared to the Company's previous guidance of mid to high 20s in percentage terms, compared to 31.4% in the fourth quarter of 2010 and 30.9% in the first quarter of 2010
• Gross margin relating to the Company's in-house wafer production to module production was 32.2%, compared to the Company's previous guidance of approximately 30%
• Operating income was $84.5 million, compared to $145.1 million in the fourth quarter of 2010 and $76.0 million in the first quarter of 2010
• Operating margin was 15.3%, compared to 22.6% in the fourth quarter of 2010 and 22.6% in the first quarter of 2010
• Net income was $47.7 million, which included a net foreign currency exchange loss of $24.1 million, compared to net income of $145.3 million in the fourth quarter of 2010 and $44.5 million in the first quarter of 2010
• Earnings per fully diluted American Depositary Share ("ADS") were $0.63, compared to $1.87 in the fourth quarter of 2010 and $0.66 in the first quarter of 2010

"Building off our quality-performance and manufacturing efficiency leadership, in 2011 we are increasingly focused on elevating our technology innovation, customer orientation and corporate social responsibility advantages. As we further differentiate our brand, we believe such enhancements are directly responsible for our recent successes in supplying large commercial and utility-scale segments in Italy, Germany and the United States."

CHANGZHOU, China, Feb. 22, 2011 /PRNewswire-Asia-FirstCall/

Fourth Quarter 2010 Financial and Operating Highlights

• Solar module shipments were approximately 351 MW for the fourth quarter of 2010, compared to the Company's previous guidance of approximately 300 MW, representing an increase of 20.7% sequentially and 114.3% year-over-year
• Net revenues were $641.8 million, an increase of 26.3% sequentially and 104.9% year-over-year
• Gross profit was $201.8 million, an increase of 26.6% sequentially and 97.4% year-over-year
• Gross margin was 31.4%, above the Company's previous guidance of approximately 30%, compared to 31.4% in the third quarter of 2010 and 32.6% in the fourth quarter of 2009
• Gross margin relating to the Company's in-house wafer production to module production was 36.5%, compared to its previous guidance of mid 30s in percentage terms
• Operating income was $145.1 million, compared to $113.0 million in the third quarter of 2010 and $64.4 million in the fourth quarter of 2009
• Operating margin was 22.6%, compared to 22.2% in the third quarter of 2010 and 20.6% in the fourth quarter of 2009
• Net income was $145.3 million, which included a net foreign currency exchange gain of $25.3 million, compared to net income of $82.9 million in the third quarter of 2010 and $48.8 million in the fourth quarter of 2009
• Earnings per fully diluted American Depositary Share ("ADS") were $1.87, compared to $1.08 in the third quarter of 2010 and $0.74 in the fourth quarter of 2009
• Non-GAAP EPS was $1.46 vs. $0.66

Full Year 2010 Results Financial and Operating Highlights

• Solar module shipments were approximately 1.06 GW, compared to the Company's previous guidance of approximately 1 GW, an increase of 164.8% from 2009
• Total net revenues were $1.86 billion, an increase of 119.8% from 2009
• Gross profit was $584.4 million, an increase of 146.4% from 2009
• Gross margin was 31.5%, compared to 28.1% in 2009
• Operating income was $417.3 million, compared to $135.4 million in 2009
• Net income for the full year was $311.5 million, an increase of 223.7% from 2009
• Earnings per fully diluted ADS for 2010 were $4.18, compared to $1.69 in 2009
• Non-GAAP  EPS was $4.06 vs. $1.72
  

"We are very pleased with our outstanding performance in the fourth quarter, which saw record shipment volume and resulted in our exceeding previous guidance for both the fourth quarter and full year 2010," said Mr. Jifan Gao, Chairman and CEO of Trina Solar.

"In a year of industry-wide ASP declines which made PV systems more affordable, our shipment volume and revenue more than doubled year over year and we continued to increase margins. This was achieved through our relentless drive for manufacturing and supply chain efficiency, increased local sales and expanded global support operations. Additionally, despite significant capacity expansion in 2010, we further strengthened our balance sheet over 2009 through our continued focus on maintaining positive operational cashflows."

"Our growth in 2010 demonstrates the successful execution of our strategy to expand sales across distribution segments and geographic end markets in North America and other exciting PV markets such as India, Australia and China. We believe this reflects growing customer appreciation of the high quality and performance of Trina Solar products, and our brand's increasing global recognition, which we are enhancing through premier marketing initiatives such as our Formula 1 team sponsorship."

"Our commitment to create high quality products remains critical to our success, and in the fourth quarter of 2010, we initiated construction of our Key State PV Research Laboratory, which is located next to our manufacturing facilities and a growing number of strategic supply partners operating within our state of the art Changzhou Trina PV Park.  We expect to complete the construction of the laboratory in late 2011."

"As we look to 2011 we will continue to focus on increasing the efficiencies of our new and existing products to reinforce our cost leadership, further build supportive customer relationships, and continue to implement environmental and health and safety best practice initiatives."

First Quarter and Fiscal Year 2011 Guidance

For the first quarter of 2011, the Company expects its shipment volume for PV modules to be slightly higher than that for the fourth quarter of 2010.

The Company expects its gross margin relating to its in-house wafer production to module production to be approximately 30% during the first quarter of 2011. The Company believes its overall gross margin, taking into account wafer and cell requirements outsourced to third party suppliers to meet demand in excess of its internal capacity, for the first quarter will be in the mid to high 20s in percentage terms. Such guidance is based on the average exchange rate between the Euro and U.S. dollar from January 1, 2011 to February 22, 2011.

For the full year of 2011, the Company expects total PV module shipments between 1.75 GW to 1.80 GW, representing an increase of 65.6% to 70.3% from 2010.

CHANGZHOU, China, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic (PV) products from the production of ingots, wafers and cells to the assembly of PV modules, announced the signing of a licensing, sales and marketing partnership agreement with Zep Solar, Inc., a US based manufacturer of the first comprehensive platform for module-integrated installation hardware. This hardware is expected to deliver significant reductions to total system costs and will become one of the quickest ways to install PV arrays for residential and commercial roof applications.

Third Quarter 2010 Financial and Operating Highlights

• Solar module shipments were approximately 291 MW, exceeding the Company's previous guidance of 250 MW to 260 MW, representing an increase of 30.4% sequentially and 137.0% year-over-year

• Net revenues were $508.3 million, an increase of 37.1% sequentially and 103.5% year-over-year

• Overall gross margin was 31.4%, above the Company's previous guidance of approximately 30%, compared to 32.1% in the second quarter of 2010 and 28.5% in the third quarter of 2009

• Gross margin was 37.6%, above the Company's previous guidance of mid 30s in percentage terms, relating to its in-house wafer production to module production

• Operating income and operating margin were $113.0 million and 22.2%, respectively, compared to $83.3 million and 22.5%, respectively, in the second quarter of 2010

• Net income was $82.9 million, which included a net foreign currency exchange loss of $8.3 million, compared to net income of $38.7 million in the second quarter of 2010

• Earnings per fully diluted ADS were $1.08, which included the impact of a net foreign currency exchange loss of $0.11 per fully diluted ADS, compared to $0.52 in the second quarter of 2010

"We are very pleased to deliver another strong quarter which saw a record 30% jump in shipment volume and a sequential ASP increase, resulting in revenues surpassing a milestone of $500 million," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "We exceeded our previous shipment guidance and margin guidance due to ongoing strong demand and continued efficient execution."

"We have furthered our goal to build a globally recognized and trusted brand through raising the performance and reliability of our products to an expanding client base. As a result, we are increasingly becoming the supplier of choice in both established and emerging PV markets worldwide."

"We continue to see strong demand momentum into the fourth quarter and the outlook for 2011 is increasingly positive; we expect that demand for our products will outpace our planned capacity expansion in 2011. Our expansion will allow us to increase sales in high growth PV markets such as the United States and Japan, while expand our presence and sales in Australia and other emerging solar markets. In parallel, our continued investments in localizing customer service and increasing service levels allow us to target higher value end-segments and high profile projects and to further differentiate our product offerings from other brands.  We expect continuous gain in market share linked to our sales strategy and our emphasis on quality in our existing and new PV products and solutions."

Fourth Quarter and Full Year 2010 Guidance

For the fourth quarter of 2010, the Company expects to ship approximately 300 MW of PV modules.  

The Company expects its gross margin relating to its in-house wafer production to module production to be in the mid 30s in percentage terms during the fourth quarter of 2010.  The Company believes its overall gross margin, taking into account wafer and cell requirements outsourced to third party suppliers to meet demand in excess of its internal capacity, for the fourth quarter will be approximately 30%. Such guidance is based on the average exchange rate between the Euro and U.S. dollar from October 1, 2010 to November 30, 2010.

For the full year of 2010, the Company raises its guidance for total PV module shipments to be approximately 1 GW, compared to its earlier guidance of between 900 MW to 930 MW, representing an increase of approximately 151% from the annual PV module shipments in 2009.

Excerpts:

We are very pleased to report another quarter of strong operating results," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "We exceeded our previous guidance through both record shipment volumes, and despite significant Euro currency pressures, a sequential improvement in gross margin.

Our high quality products, well-recognized brand and customer loyalties allowed us to expand shipments to an increasing number of geographical end-markets and PV user segments. In addition to growing our business in Australia and Southeast Asia, we had notable successes in the United States. This included signing a landmark supply agreement with Southern California Edison to participate in their California Solar Program, a milestone utility-owned PV generation project in the United States.

We see increasing evidence that strong demand for our PV products will extend well into 2011, and we are currently looking into how best to manage capacity expansion to capture increasing global market opportunities.

Sales Outlook

As a result of strong demand for its module products in both European and non-European markets, the Company expects to increase its shipment volume in the second half of 2010 compared to the first half. Additionally, the Company expects to increase its percentage of global shipments to the United States in the second half of 2010.

2010 and 2011 Capacity Expansion

Through yield increases achieved from improved cell conversion efficiency rates, improved production efficiencies and manufacturing line enhancements, the Company has increased its annualized in-house production capacities of ingot and wafer as well as PV cells and modules to approximately 700 MW and 850 MW respectively as of June 30, 2010. The Company expects to expand its annualized cell and module production capacity to reach up to 950 MW by the end of August 2010.

By the end of 2011, the Company expects to expand its annualized in-house production capacities of ingot and wafer as well as PV cell and module production capacity to approximately 1.0 GW and 1.5 GW respectively.

For the third quarter of 2009, the Company expects to ship between 90 MW and 110 MW of PV modules.

For the full year of 2009, the Company reiterates the guidance for total PV module shipments between 350 MW to 400 MW, representing an increase of 74% to 99% from 2008.

Source: PR Newswire (July 27, 2009)

For the second quarter of 2009, the Company expects to ship between 60 MW to 65 MW of PV modules. The Company believes gross margin for the second quarter will likely be between 18% and 20%.

For the full year of 2009 the Company reiterates the guidance for total PV module shipments between 350 MW to 400 MW, representing an increase of 74% to 99% from 2008.

Source: PR Newswire (May 28, 2009)

Guidance Report:

Full Year Fiscal 2008 Guidance Ending December

 Source: PR Newswire (February 17, 2009)