WTO Anti Dumping
Trina Solar Ltd. swung to a wider-than-expected first-quarter loss as the Chinese solar-products maker's margins were squeezed by provisions for anti-dumping duties.
Solar companies have struggled as prices fall amid stiff industry-wide competition and weak demand from Europe, the sector's biggest market. Trina and other Chinese solar companies took another hit this month when the U.S. Department of Commerce decided to impose a 31% anti-dumping tariff, saying the companies had sold their products below fair value in the U.S. The company has previously said it plans to stay in the U.S. market for the long term.
The company is also targeting sales growth in western China, and recently established new sales and development offices in Chengdu and Urumqi. Trina said it is also seeking opportunities in South America, Canada, Africa and the Middle East.
Trina reported a loss of $29.8 million, or 42 cents an American depositary share, compared with a year-earlier profit of $47.7 million, or 63 cents an ADS. Revenue dropped 36% to $349.9 million.
Analysts polled by Thomson Reuters most recently forecast a loss of 29 cents on revenue of $399 million.
Gross margin fell to 5.8% from 27.5%, reflecting selling price declines and the company's provision of $26.2 million for potential countervailing and anti-dumping duties. The company had predicted a gross margin in the low teens.
Total shipments of photovoltaic modules were 380 megawatts, short of the company's previous guidance of 400 megawatts to 430 megawatts.
For the second quarter, Trina expects shipments of 500 megawatts to 520 megawatts, and a gross margin of around 10%.
Trina's American depositary shares closed Tuesday at $5.33 and were inactive premarket. The stock is down 20% so far this year.