Wednesday, November 19, 2008
CSR invests 2.1 billion CNY to expand Zhuzhou wind power production base
November 19th 2008, CSR Zhuzou Electric Locomotive Research Institute Co., Ltd released their plan to build CSR Time Industrial Park in Zhuzhou, the total investment will be 3.35 billion CNY including 2.1 billion CNY for the wind power production base expansion.
Shandong Shouguang Huaneng Wind Power Project to begin operation by the end of 2008
Shandong Shouguang Wind Power Project is invested by Huaneng Group and their American partner, and the total investment is 559 million RBM.
33 sets of 1.5MW wind turbines will be installed, and about 96.5 million KWH power could be transfered to the power grid each year after the operation starts at the end of December 2008.
33 sets of 1.5MW wind turbines will be installed, and about 96.5 million KWH power could be transfered to the power grid each year after the operation starts at the end of December 2008.
AMSC Windtec to design wind turbine for China's Shenyang Blower Works
November 18th 2008, AMSC Windtec signed cooperation agreement with Shenyang Blower Works.
American Superconductor Corporation's Windtec subsidiary will provide the Shenyang Blower Works with designs for its 2MW doubly fed induction wind turbine, in a move that will position the company as a leading supplier of wind turbines to the Chinese marketplace.
American Superconductor will also help the Chinese company source all the core components for the wind turbines from local suppliers, as well as help it establish a wind turbine manufacturing line and build and test its first prototype wind turbines.
It will also provide the full electrical systems for all the turbines.
After receiving certification, Shenyang Blower Works will then manufacture and sell the turbines, primarily in the Chinese market.
Founded in 1934 and based in Shenyang, China, Shenyang Blower Works is a state-owned company that makes an array of industrial equipment including large-scale compressors, blowers, fans, heat exchangers as well as large-scale nuclear power pumps, boiler feed pumps and petrochemical pumps.
The company plans to have its first prototype turbines commissioned in 2009 and expects to begin series production in 2010.
According to the Chinese Wind Energy Association, China will grow its base of wind power from 5.9GW at the end of 2007 to more than 10GW in 2008.
In its Global Wind Energy Outlook 2008 report, the Global Wind Energy Council estimates that China's installed base could grow to between 101GW and 201GW by 2020.
American Superconductor Corporation's Windtec subsidiary will provide the Shenyang Blower Works with designs for its 2MW doubly fed induction wind turbine, in a move that will position the company as a leading supplier of wind turbines to the Chinese marketplace.
American Superconductor will also help the Chinese company source all the core components for the wind turbines from local suppliers, as well as help it establish a wind turbine manufacturing line and build and test its first prototype wind turbines.
It will also provide the full electrical systems for all the turbines.
After receiving certification, Shenyang Blower Works will then manufacture and sell the turbines, primarily in the Chinese market.
Founded in 1934 and based in Shenyang, China, Shenyang Blower Works is a state-owned company that makes an array of industrial equipment including large-scale compressors, blowers, fans, heat exchangers as well as large-scale nuclear power pumps, boiler feed pumps and petrochemical pumps.
The company plans to have its first prototype turbines commissioned in 2009 and expects to begin series production in 2010.
According to the Chinese Wind Energy Association, China will grow its base of wind power from 5.9GW at the end of 2007 to more than 10GW in 2008.
In its Global Wind Energy Outlook 2008 report, the Global Wind Energy Council estimates that China's installed base could grow to between 101GW and 201GW by 2020.
LDK Solar Reports Financial Results for Third Quarter 2008
XINYU CITY, China and SUNNYVALE, Calif., Nov 19, 2008 /PRNewswire-FirstCall via COMTEX/ -- LDK Solar Co., Ltd., a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the third quarter ended September 30, 2008. All financial results are reported in U.S. dollars on a U.S. GAAP basis.
Third Quarter 2008 Financial Highlights:
-- Revenue of $541.8 million, up 22.7% quarter-over-quarter;
-- Annualized wafer production capacity reached 1.2 GW by end the quarter;
-- Signed 14 long-term wafer supply agreements year-to-date;
-- Total wafer shipments increased 31.8% to 252.7 MW during the quarter;
-- Gross profit margin for the quarter was 22.7%; and
-- Completed a follow-on offering of 4.8 million American depositary shares ("ADSs"), further enhancing LDK Solar's resources for accelerated expansion plans.
Net sales for the third quarter of fiscal 2008 were $541.8 million, up 22.7% from $441.7 million for the second quarter of fiscal 2008, and up 241.4% from $158.7 million for the third quarter of fiscal 2007.
Gross profit for the third quarter of fiscal 2008 was $122.9 million, up 9.5% from $112.3 million for the second quarter of fiscal 2008, and up 151.3% from $48.9 million for the third quarter of fiscal 2007. Gross profit margin for the third quarter of fiscal 2008 was 22.7% compared to 25.4% in the second quarter of fiscal 2008 and 30.8% in the third quarter of fiscal 2007.
Operating profit for the third quarter of fiscal 2008 was $107.8 million, up 7.5% from $100.3 million for the second quarter of fiscal 2008, and up 149.6% from $43.2 million for the third quarter of fiscal 2007. Operating profit margin for the third quarter of fiscal 2008 was 19.9% compared to 22.7% in the second quarter of fiscal 2008 and 27.2% in the third quarter of fiscal 2007.
Income tax expense for the third quarter of fiscal 2008 was $13.8 million, compared to income tax expense of $13.3 million in the second quarter of fiscal 2008.
Net income for the third quarter of fiscal 2008 was $88.4 million, or $0.77 per diluted ADS, compared to net income of $149.5 million, or $1.29 per diluted ADS for the second quarter of fiscal 2008.
LDK Solar ended the third quarter of fiscal 2008 with $347.8 million in cash and cash equivalents and $115.0 million in short-term pledged bank deposits.
On September 24, 2008, LDK Solar closed a follow-on offering of 4,800,000 ADSs, resulting in net proceeds of $192.4 million from the offering. As disclosed in the prospectus, LDK Solar expects to use approximately 60% of the net proceeds to fund the construction of its polysilicon manufacturing plant, approximately 30% to fund the capacity expansion of its wafer production facilities and the remaining 10% to fund other general corporate activities.
"We are pleased to deliver strong third quarter financial results as we continue to experience robust demand and significant growth of our business," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Total revenue this quarter was at the high end of our previously released guidance. During the quarter, we also successfully completed a secondary share offering which resulted in net proceeds of approximately $192.4 million. As a result, we believe that we are well positioned with sufficient resources to fund our current growth plans through 2009. Our market leadership position is strengthened by our accelerated execution of our wafer capacity expansion, strong wafer supply contract backlog, and our geographically diverse customer base."
"The plant commissioning process for the 1,000 MT polysilicon plant has progressed and all stations are now fully operational. Based upon the current status of the commissioning and testing phase, we expect polysilicon output in early December 2008 and estimate 2008 production to be between 15 MT and 25 MT. We anticipate a smaller than previously expected polysilicon output in 2008 as we have committed more time to industry safety and environmental protection measures. We have made considerable progress on our construction schedule for both plants and remain confident in the timeline for the construction of our 15,000 MT polysilicon plant, where we currently expect the first 5,000 MT train to be operational at the end of first quarter or the beginning of the second quarter 2009. We remain confident that we will produce between 5,000 and 7,000 MT of polysilicon in 2009," continued Mr. Peng.
"As we look ahead, our business will not be immune to the current global economic downturn. However, given the strength of our business model, conservative financial management, and our strong cash position, we remain confident in our long-term growth opportunities, and in our ability to succeed and to continue our role in driving the solar industry forward," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.
For the fourth quarter of fiscal 2008, LDK Solar estimates its revenue to be in the range of $555 million to $565 million with wafer shipments between 260 MW to 270 MW and gross margin between 18% and 21%. By the end of fiscal 2008, LDK Solar currently expects to:
-- Reach an annualized wafer production capacity of 1.4 GW; and
-- Produce 15 to 25 MT of polysilicon.
For the full year of fiscal 2009, LDK Solar currently estimates:
-- Revenue to be in the range of $2.9 billion to $3.1 billion;
-- Wafer shipments in the range of 1.80 GW to 1.85 GW;
-- Annualized wafer production capacity to be 2.3 GW by the end of 2009;
-- Gross margin between 26% and 31%; and
-- Production of between 5,000 and 7,000 MT of polysilicon in 2009.
Third Quarter 2008 Financial Highlights:
-- Revenue of $541.8 million, up 22.7% quarter-over-quarter;
-- Annualized wafer production capacity reached 1.2 GW by end the quarter;
-- Signed 14 long-term wafer supply agreements year-to-date;
-- Total wafer shipments increased 31.8% to 252.7 MW during the quarter;
-- Gross profit margin for the quarter was 22.7%; and
-- Completed a follow-on offering of 4.8 million American depositary shares ("ADSs"), further enhancing LDK Solar's resources for accelerated expansion plans.
Net sales for the third quarter of fiscal 2008 were $541.8 million, up 22.7% from $441.7 million for the second quarter of fiscal 2008, and up 241.4% from $158.7 million for the third quarter of fiscal 2007.
Gross profit for the third quarter of fiscal 2008 was $122.9 million, up 9.5% from $112.3 million for the second quarter of fiscal 2008, and up 151.3% from $48.9 million for the third quarter of fiscal 2007. Gross profit margin for the third quarter of fiscal 2008 was 22.7% compared to 25.4% in the second quarter of fiscal 2008 and 30.8% in the third quarter of fiscal 2007.
Operating profit for the third quarter of fiscal 2008 was $107.8 million, up 7.5% from $100.3 million for the second quarter of fiscal 2008, and up 149.6% from $43.2 million for the third quarter of fiscal 2007. Operating profit margin for the third quarter of fiscal 2008 was 19.9% compared to 22.7% in the second quarter of fiscal 2008 and 27.2% in the third quarter of fiscal 2007.
Income tax expense for the third quarter of fiscal 2008 was $13.8 million, compared to income tax expense of $13.3 million in the second quarter of fiscal 2008.
Net income for the third quarter of fiscal 2008 was $88.4 million, or $0.77 per diluted ADS, compared to net income of $149.5 million, or $1.29 per diluted ADS for the second quarter of fiscal 2008.
LDK Solar ended the third quarter of fiscal 2008 with $347.8 million in cash and cash equivalents and $115.0 million in short-term pledged bank deposits.
On September 24, 2008, LDK Solar closed a follow-on offering of 4,800,000 ADSs, resulting in net proceeds of $192.4 million from the offering. As disclosed in the prospectus, LDK Solar expects to use approximately 60% of the net proceeds to fund the construction of its polysilicon manufacturing plant, approximately 30% to fund the capacity expansion of its wafer production facilities and the remaining 10% to fund other general corporate activities.
"We are pleased to deliver strong third quarter financial results as we continue to experience robust demand and significant growth of our business," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Total revenue this quarter was at the high end of our previously released guidance. During the quarter, we also successfully completed a secondary share offering which resulted in net proceeds of approximately $192.4 million. As a result, we believe that we are well positioned with sufficient resources to fund our current growth plans through 2009. Our market leadership position is strengthened by our accelerated execution of our wafer capacity expansion, strong wafer supply contract backlog, and our geographically diverse customer base."
"The plant commissioning process for the 1,000 MT polysilicon plant has progressed and all stations are now fully operational. Based upon the current status of the commissioning and testing phase, we expect polysilicon output in early December 2008 and estimate 2008 production to be between 15 MT and 25 MT. We anticipate a smaller than previously expected polysilicon output in 2008 as we have committed more time to industry safety and environmental protection measures. We have made considerable progress on our construction schedule for both plants and remain confident in the timeline for the construction of our 15,000 MT polysilicon plant, where we currently expect the first 5,000 MT train to be operational at the end of first quarter or the beginning of the second quarter 2009. We remain confident that we will produce between 5,000 and 7,000 MT of polysilicon in 2009," continued Mr. Peng.
"As we look ahead, our business will not be immune to the current global economic downturn. However, given the strength of our business model, conservative financial management, and our strong cash position, we remain confident in our long-term growth opportunities, and in our ability to succeed and to continue our role in driving the solar industry forward," concluded Mr. Peng.
Business Outlook
The following statements are based upon management's current expectations. These statements are forward-looking in nature, and the actual results may differ materially. You should read the "Safe Harbor Statement" below with respect to the risks and uncertainties relating to these forward-looking statements.
For the fourth quarter of fiscal 2008, LDK Solar estimates its revenue to be in the range of $555 million to $565 million with wafer shipments between 260 MW to 270 MW and gross margin between 18% and 21%. By the end of fiscal 2008, LDK Solar currently expects to:
-- Reach an annualized wafer production capacity of 1.4 GW; and
-- Produce 15 to 25 MT of polysilicon.
For the full year of fiscal 2009, LDK Solar currently estimates:
-- Revenue to be in the range of $2.9 billion to $3.1 billion;
-- Wafer shipments in the range of 1.80 GW to 1.85 GW;
-- Annualized wafer production capacity to be 2.3 GW by the end of 2009;
-- Gross margin between 26% and 31%; and
-- Production of between 5,000 and 7,000 MT of polysilicon in 2009.
Trina Solar Announces Third Quarter 2008 Results
By: PR Newswire
CHANGZHOU, China, Nov. 19 /PRNewswire-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, today announced its financial results for the third quarter 2008.
Third Quarter 2008 Financial Highlights
-- Solar module shipments were 66.36 MW, up 213.7% from 21.15 MW in the third quarter of 2007 and 39.5% from 47.57 MW in the second quarter of 2008
-- Total net revenues increased to $290.7 million, up 252.1% year-over-year and 42.4% sequentially
-- Gross margin was 22.4%, compared to 20.1% in the third quarter of 2007 and 23.2% in the second quarter of 2008
-- Operating margin was 16.1%, compared to 8.4% in the third quarter of 2007 and 14.3% in the second quarter of 2008
-- Net income was $32.1 million, compared to $7.8 million in the third quarter of 2007 and $17.1 million in the second quarter of 2008
-- Net income includes a foreign currency exchange loss of $4.9 million
-- Earnings per fully diluted ADS were $1.17. The effect of the third quarter foreign currency exchange losses was approximately $0.17 per fully diluted ADS
"We are very pleased with our strong performance during the third quarter," said Jifan Gao, Trina Solar's Chairman and CEO. "Despite further rising silicon costs, over the last four reporting quarters we have either met or exceeded our aggressive goals for output, revenues and operating margin. In the third quarter we again demonstrated the ability to leverage on our integrated manufacturing capabilities, enhanced further by significant improvements in operating efficiencies and cost controls as measured by our operating expenses. We are also pleased by the recently announced expansion of our product portfolio via our in-house developed UMG-based module product. This timely offering is expected to address increasing customer demand for lower cost modules, with initial sales expected in fourth quarter of 2008."
Third Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 300 MW for each of ingot, wafer, cell and module production as of September 30, 2008
-- Launched cell Lines 11 through 14, of which lines 11 and 12 were put into commercial production
-- Announced sales agreements with Invictus NV (Belgium), American Capital Energy (US), GreenergyCapital and Enel (Italy), and a sales and marketing collaboration agreement with Spanish Premier League Football Club Espanyol
-- Announced the product launch of an in-house developed UMG-based module product, with sales expected in the current fourth quarter
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the US, Belgium, France, South Korea, and Australia
-- Announced the Company's intentions to base its North American operations in the City of San Francisco
-- Announced the Company's intentions to establish warehouse operations in Rotterdam, a key port city in the Netherlands
Third Quarter 2008 Results
Net Revenues
Trina Solar's net revenues in the third quarter of 2008 were $290.7 million, an increase of 42.4% sequentially and 252.1% year-over-year. Total shipments in the third quarter of 2008 increased to 66.36 MW, up from 47.57 MW in the second quarter of 2008 and 21.15 MW in the third quarter of 2007. Average sales price ("ASP") was $4.09 in the third quarter of 2008, compared to $4.03 in the second quarter of 2008 and $3.75 in the third quarter of 2007.
Gross Profit and Margin
Gross profit in the third quarter of 2008 was $65.2 million, an increase of 37.6% sequentially and 292.9% year-over-year. Gross margin was 22.4% in the third quarter of 2008, a decrease from 23.2% in the second quarter of 2008 and an increase from 20.1% in the third quarter of 2007. The sequential decrease in gross margin was predominantly due to higher cost of silicon raw materials while the year-over-year increase was primarily due to higher module ASP and cost efficiencies from an increased degree of vertical integration, including in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the third quarter of 2008 were $18.4 million, or 6.3% of net revenues. This compares to 8.9% in the second quarter, reflecting the fourth straight quarterly improvement as a net revenue percentage. Operating expenses in the third quarter of 2008 included approximately $0.6 million of share-based compensation expenses.
Operating income in the third quarter of 2008 was $46.8 million, an increase of 60.6% sequentially and 575.0% year-over-year.
Operating margin was 16.1% in the third quarter of 2008, compared to 14.3% in the second quarter of 2008 and 8.4% in the third quarter of 2007. The sequential increase was primarily due to lower general and administrative expenses as a percentage of net revenues while the year-over-year increase was primarily due to both lower general and administrative expenses and selling expenses as a percentage of net revenues.
Net Interest Expense
Net Interest expense in the third quarter of 2008 was $7.2 million, compared to $5.1 million in the second quarter of 2008 and $0.6 million in the third quarter of 2007.
Foreign Currency Exchange Loss
Foreign currency exchange loss was $4.9 million in the third quarter of 2008, compared to $6.1 million sequentially. This was primarily due to the devaluation of the Euro against the U.S. Dollar, which resulted in a loss upon the remeasurement of the Company's receivables.
Net Income and EPS
Net income was $32.1 million in the third quarter of 2008, compared to $17.1 million in the second quarter of 2008 and $7.8 million in the third quarter of 2007. Net Income includes a foreign currency exchange loss of $4.9 million.
Net margin was 11.0% in the third quarter of 2008, compared to 8.4% in the second quarter of 2008 and 9.4% in the third quarter of 2007. The effect of the third quarter foreign currency exchange losses, net of tax effect, were approximately $0.17 per fully diluted ADS. Earnings per fully diluted ADS were $1.17.
Senior Convertible Notes Offering
On July 24, 2008, Trina Solar completed a public offering of $138 million of Senior Convertible Notes due 2013. The net proceeds of the offering is being used for the expansion of manufacturing lines for the production of silicon ingots, wafers, solar cells and solar modules, the purchase of raw materials, research and development and other general corporate purposes.
Financial Condition
As of September 30, 2008, the Company had $136.3 million in cash and cash equivalents, excluding the Company's restricted cash balance of $48.5 million. The restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities.
As of October 31, 2008, the Company's total approved credit facilities totaled approximately $450 million, of which includes approximately $150 million in available credit.
Fourth Quarter and Fiscal Year 2008 Guidance
For the fourth quarter of 2008, the Company expects to ship between 55 MW and 60 MW of PV modules and currently expects total net revenues to be in the range of $190 million to $210 million. The Company expects gross margin for the fourth quarter will likely be between 13% and 15% and estimates operating margin to range between 5% and 7% of total net revenues.
For the full year of 2008, the Company updates its projections as follows:
Total net revenues to be in the range of $800 million to $850 million, compared to previous guidance of $850 million to $900 million.
Total PV module shipments between 200 MW to 206 MW, compared to previous guidance of 210 MW to 220 MW.
The Company believes gross margin to be in the range of 20% and 22% for the year, compared to previous guidance of 23% and 25%, and estimates operating margin will likely be in the range of 12% to 14% of total net revenues, compared to previous guidance of 15% and 17%.
Business Outlook
Given industry concerns related to changes in the global economic and credit environments, the Company reiterates its confidence in regards to its financial strength and operational strategies for fiscal year 2009.
"We are confident in our ability to successfully navigate our operations and related capital requirements despite recent and significant market environment changes," stated Terry Wang, Chief Financial Officer. "We are fully aware of the risks and volatility of market conditions. After careful examination of various scenarios reflecting market demand, average selling price, and cost reductions of key material inputs, we reiterate expectations to preserve sufficient cash holdings and to maintain positive cashflows from operations initiated in the third quarter, which were over $20 million. These cashflows will drive the funding for future operations and capacity expansions, to be deployed prudently and effectively based on evolving market conditions."
Management Changes
The Company announces recent management changes:
Dr. Suping Chen has joined the Company as Vice President of Manufacturing, East Campus. Mr. Chen previously worked at Samsung Electronics (Suzhou) Semiconductor Co., Ltd. and at Seagate Technology International (Wuxi) Co., Ltd., where he served for over seven years in roles including Senior Product Manager and Operations Director. Dr. Chen, who formed his own management consulting company in 2006, has more than 12 years of IT manufacturing experience in China.
Dr. Qiang Huang has been appointed as Vice President of Technology. He replaces Mr. Ting Cheong Ang, the former Vice President of Technology Development. Dr. Huang served earlier as a Director of Manufacturing Engineering. Before joining our Company, he earlier served as Engineering Manager with Taiwan Semiconductor Manufacturing Co. (TSMC) and as a Senior Manager of Device Integration at ST Microelectronics in Singapore. Dr. Huang has more than eight years of commercial operations experience in semiconductor engineering development and engineering problem solving.
The Company also announces the appointment of Mr. Steven (Yu) Zhu as Vice President of International Procurement and Business Development. The position fills the vacancy created by the departure of Mr. Andrew Klump, the former Vice President of Business Development. Mr. Zhu, who joined the Company in 2005, earlier worked for IBM in the United States for four years as a global training leader and software engineer. Prior to joining the Company, Mr. Zhu also was founder and president of a wireless internet company from 2002 to 2005.
CHANGZHOU, China, Nov. 19 /PRNewswire-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, today announced its financial results for the third quarter 2008.
Third Quarter 2008 Financial Highlights
-- Solar module shipments were 66.36 MW, up 213.7% from 21.15 MW in the third quarter of 2007 and 39.5% from 47.57 MW in the second quarter of 2008
-- Total net revenues increased to $290.7 million, up 252.1% year-over-year and 42.4% sequentially
-- Gross margin was 22.4%, compared to 20.1% in the third quarter of 2007 and 23.2% in the second quarter of 2008
-- Operating margin was 16.1%, compared to 8.4% in the third quarter of 2007 and 14.3% in the second quarter of 2008
-- Net income was $32.1 million, compared to $7.8 million in the third quarter of 2007 and $17.1 million in the second quarter of 2008
-- Net income includes a foreign currency exchange loss of $4.9 million
-- Earnings per fully diluted ADS were $1.17. The effect of the third quarter foreign currency exchange losses was approximately $0.17 per fully diluted ADS
"We are very pleased with our strong performance during the third quarter," said Jifan Gao, Trina Solar's Chairman and CEO. "Despite further rising silicon costs, over the last four reporting quarters we have either met or exceeded our aggressive goals for output, revenues and operating margin. In the third quarter we again demonstrated the ability to leverage on our integrated manufacturing capabilities, enhanced further by significant improvements in operating efficiencies and cost controls as measured by our operating expenses. We are also pleased by the recently announced expansion of our product portfolio via our in-house developed UMG-based module product. This timely offering is expected to address increasing customer demand for lower cost modules, with initial sales expected in fourth quarter of 2008."
Third Quarter 2008 and Recent Business Highlights
-- Expanded capacity to approximately 300 MW for each of ingot, wafer, cell and module production as of September 30, 2008
-- Launched cell Lines 11 through 14, of which lines 11 and 12 were put into commercial production
-- Announced sales agreements with Invictus NV (Belgium), American Capital Energy (US), GreenergyCapital and Enel (Italy), and a sales and marketing collaboration agreement with Spanish Premier League Football Club Espanyol
-- Announced the product launch of an in-house developed UMG-based module product, with sales expected in the current fourth quarter
-- Enhanced the Company's brand recognition and market share by further developing sales channels in developing solar markets, including the US, Belgium, France, South Korea, and Australia
-- Announced the Company's intentions to base its North American operations in the City of San Francisco
-- Announced the Company's intentions to establish warehouse operations in Rotterdam, a key port city in the Netherlands
Third Quarter 2008 Results
Net Revenues
Trina Solar's net revenues in the third quarter of 2008 were $290.7 million, an increase of 42.4% sequentially and 252.1% year-over-year. Total shipments in the third quarter of 2008 increased to 66.36 MW, up from 47.57 MW in the second quarter of 2008 and 21.15 MW in the third quarter of 2007. Average sales price ("ASP") was $4.09 in the third quarter of 2008, compared to $4.03 in the second quarter of 2008 and $3.75 in the third quarter of 2007.
Gross Profit and Margin
Gross profit in the third quarter of 2008 was $65.2 million, an increase of 37.6% sequentially and 292.9% year-over-year. Gross margin was 22.4% in the third quarter of 2008, a decrease from 23.2% in the second quarter of 2008 and an increase from 20.1% in the third quarter of 2007. The sequential decrease in gross margin was predominantly due to higher cost of silicon raw materials while the year-over-year increase was primarily due to higher module ASP and cost efficiencies from an increased degree of vertical integration, including in-house cell production.
Operating Expense, Income and Margin
Operating expenses in the third quarter of 2008 were $18.4 million, or 6.3% of net revenues. This compares to 8.9% in the second quarter, reflecting the fourth straight quarterly improvement as a net revenue percentage. Operating expenses in the third quarter of 2008 included approximately $0.6 million of share-based compensation expenses.
Operating income in the third quarter of 2008 was $46.8 million, an increase of 60.6% sequentially and 575.0% year-over-year.
Operating margin was 16.1% in the third quarter of 2008, compared to 14.3% in the second quarter of 2008 and 8.4% in the third quarter of 2007. The sequential increase was primarily due to lower general and administrative expenses as a percentage of net revenues while the year-over-year increase was primarily due to both lower general and administrative expenses and selling expenses as a percentage of net revenues.
Net Interest Expense
Net Interest expense in the third quarter of 2008 was $7.2 million, compared to $5.1 million in the second quarter of 2008 and $0.6 million in the third quarter of 2007.
Foreign Currency Exchange Loss
Foreign currency exchange loss was $4.9 million in the third quarter of 2008, compared to $6.1 million sequentially. This was primarily due to the devaluation of the Euro against the U.S. Dollar, which resulted in a loss upon the remeasurement of the Company's receivables.
Net Income and EPS
Net income was $32.1 million in the third quarter of 2008, compared to $17.1 million in the second quarter of 2008 and $7.8 million in the third quarter of 2007. Net Income includes a foreign currency exchange loss of $4.9 million.
Net margin was 11.0% in the third quarter of 2008, compared to 8.4% in the second quarter of 2008 and 9.4% in the third quarter of 2007. The effect of the third quarter foreign currency exchange losses, net of tax effect, were approximately $0.17 per fully diluted ADS. Earnings per fully diluted ADS were $1.17.
Senior Convertible Notes Offering
On July 24, 2008, Trina Solar completed a public offering of $138 million of Senior Convertible Notes due 2013. The net proceeds of the offering is being used for the expansion of manufacturing lines for the production of silicon ingots, wafers, solar cells and solar modules, the purchase of raw materials, research and development and other general corporate purposes.
Financial Condition
As of September 30, 2008, the Company had $136.3 million in cash and cash equivalents, excluding the Company's restricted cash balance of $48.5 million. The restricted cash comprises deposits pledged to banks to secure bank borrowings and letter of credit facilities.
As of October 31, 2008, the Company's total approved credit facilities totaled approximately $450 million, of which includes approximately $150 million in available credit.
Fourth Quarter and Fiscal Year 2008 Guidance
For the fourth quarter of 2008, the Company expects to ship between 55 MW and 60 MW of PV modules and currently expects total net revenues to be in the range of $190 million to $210 million. The Company expects gross margin for the fourth quarter will likely be between 13% and 15% and estimates operating margin to range between 5% and 7% of total net revenues.
For the full year of 2008, the Company updates its projections as follows:
Total net revenues to be in the range of $800 million to $850 million, compared to previous guidance of $850 million to $900 million.
Total PV module shipments between 200 MW to 206 MW, compared to previous guidance of 210 MW to 220 MW.
The Company believes gross margin to be in the range of 20% and 22% for the year, compared to previous guidance of 23% and 25%, and estimates operating margin will likely be in the range of 12% to 14% of total net revenues, compared to previous guidance of 15% and 17%.
Business Outlook
Given industry concerns related to changes in the global economic and credit environments, the Company reiterates its confidence in regards to its financial strength and operational strategies for fiscal year 2009.
"We are confident in our ability to successfully navigate our operations and related capital requirements despite recent and significant market environment changes," stated Terry Wang, Chief Financial Officer. "We are fully aware of the risks and volatility of market conditions. After careful examination of various scenarios reflecting market demand, average selling price, and cost reductions of key material inputs, we reiterate expectations to preserve sufficient cash holdings and to maintain positive cashflows from operations initiated in the third quarter, which were over $20 million. These cashflows will drive the funding for future operations and capacity expansions, to be deployed prudently and effectively based on evolving market conditions."
Management Changes
The Company announces recent management changes:
Dr. Suping Chen has joined the Company as Vice President of Manufacturing, East Campus. Mr. Chen previously worked at Samsung Electronics (Suzhou) Semiconductor Co., Ltd. and at Seagate Technology International (Wuxi) Co., Ltd., where he served for over seven years in roles including Senior Product Manager and Operations Director. Dr. Chen, who formed his own management consulting company in 2006, has more than 12 years of IT manufacturing experience in China.
Dr. Qiang Huang has been appointed as Vice President of Technology. He replaces Mr. Ting Cheong Ang, the former Vice President of Technology Development. Dr. Huang served earlier as a Director of Manufacturing Engineering. Before joining our Company, he earlier served as Engineering Manager with Taiwan Semiconductor Manufacturing Co. (TSMC) and as a Senior Manager of Device Integration at ST Microelectronics in Singapore. Dr. Huang has more than eight years of commercial operations experience in semiconductor engineering development and engineering problem solving.
The Company also announces the appointment of Mr. Steven (Yu) Zhu as Vice President of International Procurement and Business Development. The position fills the vacancy created by the departure of Mr. Andrew Klump, the former Vice President of Business Development. Mr. Zhu, who joined the Company in 2005, earlier worked for IBM in the United States for four years as a global training leader and software engineer. Prior to joining the Company, Mr. Zhu also was founder and president of a wireless internet company from 2002 to 2005.
Dow Corning, Wacker Chemie start production at $1.2B silicon plant
November 18, 2008
Chinese plant expects to produce pyrogenic silica and siloxane, upstream products for silicon used in solar, construction, automotive, electronics and other industries.
Munich, Germany-based Wacker Chemie (Frankfurt:WCH.F) and Michigan's Dow Corning have started production in the first stage of their pyrogenic silica and siloxane plants in Zhangjiagang, China.
The 1 million square-meter site in the Jiangsu Yangtze River Chemical Industrial Park represents an investment of about $1.2 billion. The complex is producing upstream materials for silicon, which is then used in construction, automotive, electronics, beauty products, healthcare, utilities, solar, textile, and paper.
Wacker and Dow Corning plan to jointly operate the facilities. Separate plants at the complex will manufacture finished silicon products, the companies said.
The complex has the combined capacity to produce 200,000 metric tons of siloxane and pyrogenic silica a year, with full capacity expected to be reached at the end of 2010. The companies said the facility is the largest of its kind in China.
The companies said the integrated facilities operate in a loop to reduce emissions and improve efficiency. The siloxane plant produces chlorosilane, which is used to make pyrogenic silica, while the pyrogenic silica plant has a byproduct of hydrogen chloride, which is used in the production of siloxane.
Dow Corning is a joint venture equally owned by The Dow Chemical Company (NYSE:DOW) and Corning (NYSE:GLW).
Chinese plant expects to produce pyrogenic silica and siloxane, upstream products for silicon used in solar, construction, automotive, electronics and other industries.
Munich, Germany-based Wacker Chemie (Frankfurt:WCH.F) and Michigan's Dow Corning have started production in the first stage of their pyrogenic silica and siloxane plants in Zhangjiagang, China.
The 1 million square-meter site in the Jiangsu Yangtze River Chemical Industrial Park represents an investment of about $1.2 billion. The complex is producing upstream materials for silicon, which is then used in construction, automotive, electronics, beauty products, healthcare, utilities, solar, textile, and paper.
Wacker and Dow Corning plan to jointly operate the facilities. Separate plants at the complex will manufacture finished silicon products, the companies said.
The complex has the combined capacity to produce 200,000 metric tons of siloxane and pyrogenic silica a year, with full capacity expected to be reached at the end of 2010. The companies said the facility is the largest of its kind in China.
The companies said the integrated facilities operate in a loop to reduce emissions and improve efficiency. The siloxane plant produces chlorosilane, which is used to make pyrogenic silica, while the pyrogenic silica plant has a byproduct of hydrogen chloride, which is used in the production of siloxane.
Dow Corning is a joint venture equally owned by The Dow Chemical Company (NYSE:DOW) and Corning (NYSE:GLW).
CSG Holding tests polysilicon production
CSG Holding disclosed that their polysilicon project executed by Yichang Nanbo Silicon is testing polysilicon production now.
The first phase project capacity is 1,500 metric ton polysilicon, and the construction began in June 2007, and the construction, equipment installation and adjustment and personnel training have be finished as scheduled, and they are testing the polysilicon production now.
The first phase project capacity is 1,500 metric ton polysilicon, and the construction began in June 2007, and the construction, equipment installation and adjustment and personnel training have be finished as scheduled, and they are testing the polysilicon production now.
Daqo started 6,000 metric ton polysilicon project in Zhenjiang
November 16th 2008, Daqo group signed 6,000 metric ton polysilicon project investment agreement with Zhenjiang government.
Daqo group already has one polysilicon project in Wanzhou, Sichuan province and the Wanzhou polysilicon project started production in this July.
Daqo group already has one polysilicon project in Wanzhou, Sichuan province and the Wanzhou polysilicon project started production in this July.
ReneSola Ltd Announces Third Quarter 2008 Results
Third Quarter Revenues Increased 197.4% Year-Over-Year; Third Quarter Net Income Increased 153.5% Year-Over-Year
JIASHAN, China, Nov. 18 /PRNewswire-FirstCall/ -- ReneSola Ltd ('ReneSola' or the 'Company'), a leading global manufacturer of solar wafers, today announced its unaudited financial results for the third quarter of 2008.
Financial and Business Highlights
-- Third quarter 2008 net revenues were US$215.8 million, an increase of 197.4% from US$72.5 million in the third quarter of 2007, and an increase of 25.5% from US$171.9 million in the second quarter of 2008.
-- Third quarter 2008 gross margin was 21.2% compared to 22.4% in the second quarter of 2008.
-- Third quarter 2008 net income was US$32.4 million, an increase of 153.5% from US$12.8 million in the third quarter of 2007, and an increase of 38.9% from US$23.3 million in the second quarter of 2008.
-- Third quarter 2008 basic and diluted earnings per share were US$0.24 and US$0.23, respectively, and basic and diluted earnings per ADS were US$0.48 and US$0.46, respectively. Each ADS represents two shares.
-- Third quarter production output was 102.1 MW, an increase of 23.8% from 82.5 MW in the second quarter of 2008, exceeding previously issued guidance released in the second quarter of 2008 and at the high-end of our revised guidance issued on November 3, 2008.
-- Silicon consumption rate decreased to 6.1 grams per watt in the third quarter of 2008 from 6.24 grams per watt in the second quarter of 2008.
-- Commissioned 90 MW of multicrystalline ingot and wafer capacity and 35 MW of monocrystalline ingot and wafer capacity on schedule.
-- Secured additional credit lines with two of China's leading banks providing the Company with an aggregate of RMB2.8 billion in new and existing credit facilities. The Company had US$125.2 million in cash, cash equivalents and restricted cash on its balance sheet as of September 30, 2008.
-- Development of wholly-owned Sichuan polysilicon project progressing on-schedule.
Note: For ease of comparison, pro forma results are shown throughout this statement for the second quarter of 2008, reflecting the contribution of the Company's polysilicon production joint venture in Henan province, China under the equity accounting method, which was adopted with effect from June 28, 2008.
Three months Three months Three months
ended 9/30/07 ended 6/30/08 ended 9/30/08
(Pro forma)
Net revenue (US$000) 72,540 171,889 215,754
Gross profit (US$000) 15,775 38,426 45,809
Gross margin (%) 21.7 22.4 21.2
Operating profit (US$000) 13,432 30,535 36,888
Foreign exchange loss (US$000) (569) (797) (1,192)
Profit for the period (US$000) 12,775 23,309 32,385
Production output (MW) 36.0 82.5 102.1
'We enjoyed an outstanding third quarter with continued significant growth driven by strong market demand for our quality wafer products, further reductions in our silicon consumption rate and the successful implementation of our expansion strategy,' said Mr. Xianshou Li, ReneSola's chief executive officer. 'Our third quarter expansion and ramp-up in wafer production capacity was smooth and keeps us on track to reach our 2008 full year capacity expansion target of 645 megawatts in annualized ingot production capacity.'
Mr. Li continued, 'The third quarter momentum continued through the first month of the fourth quarter and we saw strong results for October. However, since the beginning of November, we have seen downstream industry demand from Chinese customers being negatively impacted by various factors as a result of the global financial crisis.'
'Whilst we may benefit from a lack of direct exposure to many of the negative factors, we recognize the challenges that the industry faces in the near term. Spot polysilicon prices have declined significantly in recent weeks. Although this will translate to a lower cost base for our wafer production, we are experiencing pressure on wafer ASPs. The combination of these factors is likely to have a negative impact on our operating and financial results for the fourth quarter of 2008 into the first quarter of 2009.'
'Looking ahead, we are confident the current challenges in the industry are temporary and that the mid- to long-term prospects remain strong, particularly as lower raw material costs and ASPs should increase demand and lessen the industry's reliance on government subsidies. While the Company's cash position remains healthy and funding availability is further strengthened by the additional credit facilities from two of China's largest banks, we will continue to focus on streamlining our operations through strict cost controls while working to achieve further technological improvements as we position our company for continuing long-term success. The incremental supply from our upstream polysilicon manufacturing, combined with an expected increase in tolling production, and our continuing efforts in achieving productivity gains and diversifying our customer base, will help to alleviate the pressure on our business.'
Financial Results for the Third Quarter
Net Revenues
Net revenues for the third quarter of 2008 were US$215.8 million, an increase of 25.5% sequentially and 197.4% year-over-year. The increase in third quarter revenues was primarily attributable to an increase in output from the expanded production capacity and an increase in wafer ASPs.
Gross Profit
Gross profit for the third quarter of 2008 was US$45.8 million, a 19.2% increase sequentially and 190.4% year-over-year. The gross margin for the third quarter of 2008 was 21.2% compared to 22.4% in the second quarter of 2008. The decrease in gross margin was primarily attributable to an increase in feedstock costs, higher non-material related production costs due to higher inflation and a write-down of approximately $5.3 million on the value of certain raw materials. This was partially offset by a further reduction in the silicon consumption rate to 6.1 grams per watt from 6.24 grams per watt in the second quarter of 2008 and increases in wafer ASPs.
Operating Profit
Operating profit for the third quarter of 2008 was US$36.9 million, an increase of 20.8% sequentially and 174.6% year-over-year. The operating margin was 17.1% in the third quarter of 2008 compared to 17.8% in the second quarter of 2008. Total operating expenses in the third quarter of 2008 increased to US$8.9 million from US$7.9 million in the second quarter of 2008.
Earnings before Income Tax, Minority Interest and Equity in Earnings of Investee
Earnings before income tax, minority interest and equity in earnings of investee for the third quarter of 2008 were US$32.7 million, a 20.3% increase sequentially and 174.4% year-over-year. Finance costs increased by 19.0% sequentially, reflecting higher interest rates. Finance costs as a percentage of net revenue decreased from 1.6% in the second quarter of 2008 to 1.5% in the third quarter of 2008.
JIASHAN, China, Nov. 18 /PRNewswire-FirstCall/ -- ReneSola Ltd ('ReneSola' or the 'Company'), a leading global manufacturer of solar wafers, today announced its unaudited financial results for the third quarter of 2008.
Financial and Business Highlights
-- Third quarter 2008 net revenues were US$215.8 million, an increase of 197.4% from US$72.5 million in the third quarter of 2007, and an increase of 25.5% from US$171.9 million in the second quarter of 2008.
-- Third quarter 2008 gross margin was 21.2% compared to 22.4% in the second quarter of 2008.
-- Third quarter 2008 net income was US$32.4 million, an increase of 153.5% from US$12.8 million in the third quarter of 2007, and an increase of 38.9% from US$23.3 million in the second quarter of 2008.
-- Third quarter 2008 basic and diluted earnings per share were US$0.24 and US$0.23, respectively, and basic and diluted earnings per ADS were US$0.48 and US$0.46, respectively. Each ADS represents two shares.
-- Third quarter production output was 102.1 MW, an increase of 23.8% from 82.5 MW in the second quarter of 2008, exceeding previously issued guidance released in the second quarter of 2008 and at the high-end of our revised guidance issued on November 3, 2008.
-- Silicon consumption rate decreased to 6.1 grams per watt in the third quarter of 2008 from 6.24 grams per watt in the second quarter of 2008.
-- Commissioned 90 MW of multicrystalline ingot and wafer capacity and 35 MW of monocrystalline ingot and wafer capacity on schedule.
-- Secured additional credit lines with two of China's leading banks providing the Company with an aggregate of RMB2.8 billion in new and existing credit facilities. The Company had US$125.2 million in cash, cash equivalents and restricted cash on its balance sheet as of September 30, 2008.
-- Development of wholly-owned Sichuan polysilicon project progressing on-schedule.
Note: For ease of comparison, pro forma results are shown throughout this statement for the second quarter of 2008, reflecting the contribution of the Company's polysilicon production joint venture in Henan province, China under the equity accounting method, which was adopted with effect from June 28, 2008.
Three months Three months Three months
ended 9/30/07 ended 6/30/08 ended 9/30/08
(Pro forma)
Net revenue (US$000) 72,540 171,889 215,754
Gross profit (US$000) 15,775 38,426 45,809
Gross margin (%) 21.7 22.4 21.2
Operating profit (US$000) 13,432 30,535 36,888
Foreign exchange loss (US$000) (569) (797) (1,192)
Profit for the period (US$000) 12,775 23,309 32,385
Production output (MW) 36.0 82.5 102.1
'We enjoyed an outstanding third quarter with continued significant growth driven by strong market demand for our quality wafer products, further reductions in our silicon consumption rate and the successful implementation of our expansion strategy,' said Mr. Xianshou Li, ReneSola's chief executive officer. 'Our third quarter expansion and ramp-up in wafer production capacity was smooth and keeps us on track to reach our 2008 full year capacity expansion target of 645 megawatts in annualized ingot production capacity.'
Mr. Li continued, 'The third quarter momentum continued through the first month of the fourth quarter and we saw strong results for October. However, since the beginning of November, we have seen downstream industry demand from Chinese customers being negatively impacted by various factors as a result of the global financial crisis.'
'Whilst we may benefit from a lack of direct exposure to many of the negative factors, we recognize the challenges that the industry faces in the near term. Spot polysilicon prices have declined significantly in recent weeks. Although this will translate to a lower cost base for our wafer production, we are experiencing pressure on wafer ASPs. The combination of these factors is likely to have a negative impact on our operating and financial results for the fourth quarter of 2008 into the first quarter of 2009.'
'Looking ahead, we are confident the current challenges in the industry are temporary and that the mid- to long-term prospects remain strong, particularly as lower raw material costs and ASPs should increase demand and lessen the industry's reliance on government subsidies. While the Company's cash position remains healthy and funding availability is further strengthened by the additional credit facilities from two of China's largest banks, we will continue to focus on streamlining our operations through strict cost controls while working to achieve further technological improvements as we position our company for continuing long-term success. The incremental supply from our upstream polysilicon manufacturing, combined with an expected increase in tolling production, and our continuing efforts in achieving productivity gains and diversifying our customer base, will help to alleviate the pressure on our business.'
Financial Results for the Third Quarter
Net Revenues
Net revenues for the third quarter of 2008 were US$215.8 million, an increase of 25.5% sequentially and 197.4% year-over-year. The increase in third quarter revenues was primarily attributable to an increase in output from the expanded production capacity and an increase in wafer ASPs.
Gross Profit
Gross profit for the third quarter of 2008 was US$45.8 million, a 19.2% increase sequentially and 190.4% year-over-year. The gross margin for the third quarter of 2008 was 21.2% compared to 22.4% in the second quarter of 2008. The decrease in gross margin was primarily attributable to an increase in feedstock costs, higher non-material related production costs due to higher inflation and a write-down of approximately $5.3 million on the value of certain raw materials. This was partially offset by a further reduction in the silicon consumption rate to 6.1 grams per watt from 6.24 grams per watt in the second quarter of 2008 and increases in wafer ASPs.
Operating Profit
Operating profit for the third quarter of 2008 was US$36.9 million, an increase of 20.8% sequentially and 174.6% year-over-year. The operating margin was 17.1% in the third quarter of 2008 compared to 17.8% in the second quarter of 2008. Total operating expenses in the third quarter of 2008 increased to US$8.9 million from US$7.9 million in the second quarter of 2008.
Earnings before Income Tax, Minority Interest and Equity in Earnings of Investee
Earnings before income tax, minority interest and equity in earnings of investee for the third quarter of 2008 were US$32.7 million, a 20.3% increase sequentially and 174.4% year-over-year. Finance costs increased by 19.0% sequentially, reflecting higher interest rates. Finance costs as a percentage of net revenue decreased from 1.6% in the second quarter of 2008 to 1.5% in the third quarter of 2008.
Taiwan silicon wafer firm sees '09 capacity up 40-50 pct
HSINCHU, Taiwan, Nov 18 (Reuters) - Sino-American Silicon Products Inc, Taiwan's top maker of silicon wafers for solar cells, said on Tuesday it will boost its capacity 40-50 percent next year, amid booming demand for alternative energy.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
The company also expects its 2009 sales to rise by a similar amount next year to about T$16 billion ($481 million) from T$11 billion this year, President Doris Hsu said at a media event.
Established in 1981, Sino-American Silicon competes with Green Energy Technology Inc and bigger rivals such as Norway's Renewable Energy Corp ASA and China's LDK Solar Co Ltd.
It sells wafers to downstream solar cell makers such as Motech Industries and E-Ton Solar in Taiwan.
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