Trina Solar 3rd-Quarter Profit Up on Shipments to Europe, Margins Fall on Costs and Pricing
November 21, 2007: 08:58 AM EST
NEW YORK (Associated Press) - Trina Solar Ltd. said Wednesday its profit skyrocketed in the third quarter on higher shipments due to strong demand in Europe.
Net income rose 86.8 percent to $7.2 million, or 28 cents per American Depositary Share (ADS), from $3.9 million a year earlier. The company did not have outstanding ADS in the year-ago period.
Revenue rose sharply to $82.6 million from $32.4 million.
Analysts polled by Thomson Financial expected better earnings of 34 cents per ADS on revenue of $80.8 million, on average.
The solar-products company's shares dropped $6.98, or 14.3 percent, to $41.90 in premarket trading. They closed at $48.88 on Tuesday.
Trina Solar shipped solar modules with 21.2 megawatts of annual generating capacity, more than double the 8 megawatts worth of products it shipped out a year earlier. Sales in Germany, Spain and Italy accounted for 96 percent of revenue.
But because of lower average selling prices and high costs for polysilicon, a key component in solar products, gross profit margins fell to 20.1 percent from 26.2 percent.
Total operating expenses more than doubled to $9.7 million.
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