Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a global leader in photovoltaic (PV) modules, solutions and services, today announced that the Company is updating its guidance for the first quarter of 2014 based on preliminary financial data.
For the first quarter, the Company currently estimates its solar module shipments to be in the range of 540 MW to 570 MW, including 20 MW to 30 MW for its downstream projects, as compared to the previous guidance of 670 MW to 700 MW, including 20 MW to 30 MW for its downstream projects. This is primarily due to a temporary decrease in shipments to the EU pending agreement on a new minimum import price pursuant to the adjustment mechanism in the price undertaking. The Company expects shipments to European markets to increase with the finalization of the terms.
Additionally, for the first quarter of 2014, the Company currently estimates that the overall gross margin will be between 18% to 20%, compared to the Company's previous guidance of mid-teens in percentage terms. The increase in gross margin is due to improved ASP of modules and a gross margin in the high-teens from the sale of the Company's 50 MW Wuwei project.
The Company reiterates its full year 2014 module shipment guidance of 3.6 GW to 3.8 GW, of which 400 MW to 500 MW of PV modules are expected to be shipped to downstream projects. The Company expects to complete construction of between 400 MW and 500 MW in downstream PV projects during 2014.
"We remain confident that ongoing market demand for our products is strong, and that we will be able to maintain our expected level of growth in 2014 as planned," commented Mr. Jifan Gao, chairman and chief executive officer of Trina Solar. "However, given the temporary decrease in Q1 shipments to the European markets pending the finalization of the price undertaking adjustment, we are updating our guidance for the first quarter of 2014. We expect demand in certain European countries to remain strong, and our first-rate reputation and strong customer service will continue to allow Trina, as a market leader, to capture opportunities and achieve growth in the European markets. We will maintain our strategic focus on diversifying our business across a wider geographical footprint and delivering sustainable growth. We believe achieving increased gross margins will further support improved bottom line growth quarter over quarter."
As these selected estimated results are subject to the finalization of the Company's financial closing procedures, the Company's actual results may differ from its current estimates.