Breaking News

EU Targets Bortnikov, Head of Russian Secret Service, in Draft of Sanctions
Tweet TWEET

Trina Solar Announces First Quarter 2013 Results

               Trina Solar Announces First Quarter 2013 Results

PR Newswire

CHANGZHOU, China, May 29, 2013

CHANGZHOU, China, May 29, 2013 /PRNewswire/ -- Trina Solar Limited (TSL)
("Trina Solar" or the "Company"), a global leader in photovoltaic ("PV")
modules, solutions, and services, today announced its financial results for
the first quarter of 2013.

First Quarter 2013 Financial and Operating Highlights

  oSolar module shipments were approximately 393 MW during the first quarter
    of 2013, representing a sequential decrease of 5.3% from the fourth
    quarter of 2012
  oNet revenues were $260.2 million, a decrease of 14.0% from the fourth
    quarter of 2012
  oGross profit was $4.4 million, a decrease of 21.5% from the fourth quarter
    of 2012
  oGross margin was 1.7%, compared to 1.9% in the fourth quarter of 2012
  oThe Company had an accounts receivables provision reversal of $11.1
    million in the first quarter of 2013
  oOperating loss was $40.1 million, compared to $70.4 million in the fourth
    quarter of 2012
  oOperating margin was negative 15.4%, compared to negative 23.3% in the
    fourth quarter of 2012
  oThe Company had a foreign currency exchange loss of $19.0 million, net of
    changes in the fair value of derivative instruments
  oNet loss was $63.7 million, compared to a net loss of $87.2 million in the
    fourth quarter of 2012
  oLoss per fully diluted American Depositary Share ("ADS" and each ADS
    represents 50 of the Company's ordinary shares) was $0.90, compared to
    $1.23 in the fourth quarter  of 2012

"While the average selling price ("ASP") of modules continued to decline in
the first quarter due to the lingering supply-demand imbalance in the global
PV industry, the rate of decline has slowed from previous quarters," said Mr.
Jifan Gao, chairman and CEO of Trina Solar. "In this environment, we continue
to focus on improving operational efficiency and exercising financial
discipline. In the first quarter, the reductions in non-silicon costs we
achieved outweighed the fall in ASP, and we also collected a sizeable amount
of overdue accounts receivables. These efforts enable us to maintain strong
liquidity and a robust balance sheet, making us better positioned to capture
future growth opportunities.

"As previously announced, we completed several restructuring and streamlining
initiatives in the second half of 2012 and we saw sustained improvements in
our general and administrative expenses in the first quarter of 2013. We will
continue to strictly control operating costs while maintaining our product
quality and service capabilities. In terms of revenues, we achieved strong
sequential shipment growth in Japan and India, two of the most important
emerging markets for the PV industry. In Europe we worked to retain quality
customers and were also able to diversify our customer base. Trina Solar
remains committed to continuing to serve our customers and business partners
in Europe as the EU's preliminary determination on antidumping and
countervailing duty tariffs against Chinese solar products approaches.

"At the beginning of the year, we announced that the Company had been awarded
the right to develop a 50 MW solar project in Gansu province, China. We began
construction on the project during the end of the first quarter and expect to
connect the project to the power grid and begin limited production by the end
of the third quarter of 2013. For our downstream systems business, we remain
committed to focusing on R&D and delivering innovative products and solutions
to lower installation costs, while enhancing the efficiencies and ease-of-use
of solar energy."

Recent Business Highlights

During the first quarter of 2013, the Company:

  oObtained approval from the Gansu Provincial Development and Reform
    Commission to develop a 50 MW grid-connected solar power plant in Wuwei,
    Gansu Province. The project is part of a plan to stimulate the economy in
    a region challenged by semi-desert conditions. The Wuwei municipality is
    well-suited for solar energy production due to favorable irradiance and
    the ability to sell and transmit electricity to other regions in addition
    to supplying local needs.
  oAnnounced that it will supply 30 MW of photovoltaic modules to Gestamp
    Solar, one of the world's leading companies in the development and
    management of photovoltaic parks, for two projects in South Africa.
    Large-scale solar power systems will be installed in the towns of Prieska
    and De Aar in Northern Cape Province, with the capacity to generate 20 MW
    and 10 MW respectively. According to the terms of the agreement,
    deliveries will be made in the third quarter of 2013.
  oAnnounced 60-cell PDG5, the first in Trina Solar's new line of dual-rated
    frameless modules. The PDG5 is resistant to potential induced degradation
    (PID) and micro-cracking, and does not require grounding. The PDG5
    provides reliable performance under stressful environmental conditions.
  oAnnounced that according to a new report from Solar Business Services,
    titled "Australian PV - Technology and Brands 2013", Trina Solar was the
    most popular solar panel brand in Australia during 2012, accounting for
    100 MW of installations.
  oAnnounced that it has been recognized by Fast Company magazine in their
    2013 list of The World's Top 10 Most Innovative Companies in China.
  oAnnounced a new slimline frame design across its full range of 72-cell
    monocrystalline and 60-cell polycrystalline modules. Frame thickness has
    been reduced from 40mm to 35mm, and products are immediately available.

Subsequent Events

Subsequent to the first quarter of 2013, the Company:

  oFiled its annual report on Form 20-F for the fiscal year ended December
    31, 2012 with the Securities and Exchange Commission on April 2, 2013.
  oAnnounced that Jodie Roussell, Head of Public Affairs Europe at
    TrinaSolar, had been elected Vice-President of the Board of the European
    Photovoltaic Industry Association (EPIA) at the EPIA's annual general
    meeting in Brussels in March 2013.

First Quarter 2013 Results

Net Revenues
Net revenues in the first quarter of 2013 were $260.2 million, a decrease of
14.0% sequentially and 25.6% year-over-year. Total shipments were 392.6 MW,
compared to 414.5 MW in the fourth quarter of 2012 and 380.0 MW in the first
quarter of 2012. The sequential decrease in shipments was caused primarily by
a seasonal weakness in China, which, together with the continuous decline in
ASP due to supply-demand imbalances, caused the decrease in revenues.

Gross Profit and Margin
Gross profit in the first quarter of 2013 was $4.4 million, compared to a
gross profit of $5.6 million in the fourth quarter of 2012 and $20.3 million
in the first quarter of 2012.

Gross margin was 1.7% in the first quarter of 2013, compared to 1.9% in the
fourth quarter of 2012 and 5.8% in the first quarter of 2012. The year-on-year
decrease in gross margin was due primarily to declines in the ASP of modules
that exceeded decreases in costs during the past year.

Operating Expense, Loss and Margin
Operating expenses in the first quarter of 2013 were $44.5 million, a decrease
of 41.5% sequentially and a decrease of 26.0% year-over-year. The Company's
operating expenses represented 17.1% of its first quarter net revenues, a
decrease from 25.1% in the fourth quarter of 2012 and 17.2% in the first
quarter of 2012. The sequential percentage decrease was primarily due to an
accounts receivables provision reversal of $11.1 million during the first
quarter of 2013 and expense control measures taken by the Company since the
second half of 2012. Operating expenses in the first quarter of 2013 included
$1.1 million in share-based compensation expenses, compared to $0.1 million in
the fourth quarter of 2012 and $2.0 million in the first quarter of 2012.

As a result of the foregoing, operating loss in the first quarter of 2013 was
$40.1 million, compared to operating losses of $70.4 million in the fourth
quarter of 2012 and $39.9 million in the first quarter of 2012. Operating
margin was negative 15.4% in the first quarter of 2013, compared to negative
23.3% in the fourth quarter of 2012 and negative 11.4% in the first quarter of
2012. 

Net Interest Expense
Net interest expense in the first quarter of 2013 was $13.2 million, compared
to $11.4 million in the fourth quarter of 2012 and $8.8 million in the first
quarter of 2012. The sequential increase in net interest expense was primarily
due to an increase in average bank borrowings in the first quarter of 2013.

Foreign Currency Exchange Loss and Gain
The Company had a foreign currency exchange loss of $19.0 million in the first
quarter of 2013, which included changes in fair value of derivative
instruments, compared to a net gain of $4.7 million in the fourth quarter of
2012 and a net gain of $9.0 million in the first quarter of 2012. This net
loss was primarily due to the depreciation of the Euro and Japanese Yen
against the U.S. dollar during the first quarter of 2013, offset by gains from
foreign currency hedging contracts involving the Euro, Renminbi, and U.S.
dollar used by the Company to mitigate its foreign currency risk exposure.

Income Tax Benefit and Expense
Income tax benefit was $6.1 million in the first quarter of 2013, compared to
income tax expense of $11.3 million in the fourth quarter of 2012 and income
tax benefit of $8.8 million in the first quarter of 2012. The income tax
benefit in the first quarter of 2013 primarily resulted from a deferred tax
benefit recognized in connection with the net operating losses incurred in the
quarter, net of provision for valuation allowance.

Net Loss and Loss per ADS
As a result of the foregoing, net loss was $63.7 million in the first quarter
of 2013, compared to net loss of $87.2 million in the fourth quarter of 2012
and $29.8 million in the first quarter of 2012.

Net margin was negative 24.5% in the first quarter of 2013, compared to
negative 28.8% in the fourth quarter of 2012 and negative 8.5% in the first
quarter of 2012.

Loss per fully diluted ADS was $0.90 in the first quarter of 2013. The impact
of accounts receivables provision reversal was approximately $0.16, while the
effect of the foreign currency exchange net loss was approximately $0.27, per
ADS.

Financial Condition

As of March 31, 2013, the Company had $822.3 million in cash and cash
equivalents and restricted cash, and a working capital balance of $238.5
million. Total bank borrowings were $1,226.4 million, of which $395.5 million
were long-term borrowings.The Company decreased its short-term borrowings by
$45.0 million to approximately $830.8 million as of March 31, 2013.

At the end of the first quarter of 2013, $83.6 million of the Company's
convertible senior notes due July 2013 remained outstanding, which remained
unchanged from the fourth quarter of 2012.

Shareholders' equity was $823.5 million as of March 31, 2013, a decrease from
$881.8 million at the end of the fourth quarter of 2012.

Second Quarter and Fiscal Year 2013 Guidance

During the second quarter of 2013, the Company expects to ship between 500 MW
to 530 MW of PV modules.

The Company believes its overall gross margin for the second quarter, taking
into account wafer and cell quantities outsourced from third party suppliers
to meet demand in excess of its internal capacity and other needs, will be in
the middle single-digits in percentage terms. Such guidance is based on the
exchange rate between the Euro and U.S. dollar as of May 29, 2013.

For the full year 2013, the Company maintains its previous guidance of 2.0 GW
to 2.1 GW for total PV module shipments.

Operations and Business Outlook

Manufacturing Costs
In the first quarter of 2013, the Company continued its efforts to reduce
manufacturing costs, achieving a reduction of high single digit in percentage
terms from a quarter ago. The sequential decrease in non-silicon manufacturing
costs were primarily due to improved supply chain cost control, increased
utilization of the Company's in-house manufacturing capacities, as well as
increases in the Company's module efficiencies and improvements in its
manufacturing processes.

As a result of increased average poly-silicon spot prices in the first quarter
of 2013 compared to the fourth quarter of 2012, the Company experienced a
sequential increase in silicon costs in its module manufacturing business.
Through its diversified range of short, medium and long-term supply
agreements, the Company will continue to maintain competitive silicon costs
relative to current market prices.

2013 Manufacturing Capacity
As of March 31, 2013, the Company's annualized in-house ingot and wafer
production capacity remained approximately 1.2 GW and its PV cell and module
production capacity remained approximately 2.4 GW.

Project Development
The Company  has commenced the construction of its 50 MW project in Gansu
Province, China. Completion of the project is expected by the end of the third
quarter of 2013.

The Company continues to source project opportunities inside and outside of
China. The commencement of a project is subject to a number of factors, some
of which are beyond the Company's control, such as the availability of network
transmission and interconnection facilities, as well as the attainment of
certain project rights, including land use rights and the right to construct
manufacturing facilities in the relevant locations.

Conference Call

The Company will host a conference call at 8:00 a.m. ET on May 29, 2013, to
discuss the results for the quarter ended March 31, 2013. Joining Jifan Gao,
Chairman and CEO of Trina Solar, will be Terry Wang, Chief Financial Officer,
Zhiguo Zhu, Senior Vice President and President ofTrina Solar's Module
Business Unit, and Kevin Zhang, Head of Investor Relations. Supplemental
information will be made available on the Investors Section of Trina Solar's
website at www.trinasolar.com. To participate in the conference call, please
dial the following number five to ten minutes prior to the scheduled
conference call time: 1 (800) 884-2382. International callers should dial +1
(660) 422-4933. The conference ID for the call is 7055-7416.

If you are unable to participate in the call at this time, a replay will be
available on May 29 at 10:00 a.m. ET, through June 12, at 11:59 p.m. ET. To
access the replay, dial 1 (855) 859-2056, international callers should dial +1
(404) 537-3406, and enter the conference ID 7055-7416.

This conference call will be broadcast live over the Internet and can be
accessed by all interested parties on Trina Solar's website at
www.trinasolar.com. To listen to the live webcast, please go to Trina Solar's
website at least fifteen minutes prior to the start of the call to register,
download, and install any necessary audio software. For those unable to
participate during the live broadcast, a replay will be available shortly
after the call on Trina Solar's website for 90 days.

About Trina Solar Limited

Trina Solar Limited (NYSE:TSL) is a global leader in photovoltaic modules,
solutions and services. Founded in 1997 as a PV system integrator, Trina Solar
today drives smart energy together with installers, distributors, utilities
and developers worldwide. The company's industry-shaping position is based on
innovation excellence, superior product quality, vertically integrated
capabilities and environmental stewardship. For more information, please visit
www.trinasolar.com.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact in this
announcement are forward-looking statements, including but not limited to, the
Company's ability to raise additional capital to finance its activities; the
effectiveness, profitability and marketability of its products; the future
trading of the securities of the Company; the Company's ability to operate as
a public company; the period of time for which the Company's current liquidity
will enable the Company to fund its operations; general economic and business
conditions; demand in various markets for solar products; the volatility of
the Company's operating results and financial condition; the Company's ability
to attract or retain qualified senior management personnel and research and
development staff; and other risks detailed in the Company's filings with the
Securities and Exchange Commission. These forward-looking statements involve
known and unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the Company and the
industry in which the Company operates. The Company undertakes no obligation
to update forward-looking statements to reflect subsequent occurring events or
circumstances, or changes in its expectations, except as may be required by
law. Although the Company believes that the expectations expressed in these
forward looking statements are reasonable, it cannot assure you that such
expectations will turn out to be correct, and the Company cautions investors
that actual results may differ materially from the anticipated results.

Trina Solar Limited
Unaudited Condensed Consolidated Statements of Operations
(US dollars in thousands, except ADS and share data)
                                                       For the Three Months Ended
                                                       Mar. 31,      Dec. 31,      Mar. 31,

                                                       2013          2012          2012
Net revenues                                           $ 260,222     $ 302,746     $ 349,880
Cost of revenues                                         255,798       297,112       329,619
Gross profit                                             4,424         5,634         20,261
Operating expenses
Selling expenses                                         24,468        30,350        27,381
Generalandadministrativeexpenses                      14,547        40,320        26,082
Researchanddevelopmentexpenses                        5,475         5,392         6,685
Total operating expenses                                 44,490        76,062        60,148
Operating loss                                           (40,066)      (70,428)      (39,887)
Foreign exchange (loss) gain                             (20,063)      2,582         6,472
Interest expenses                                        (14,608)      (12,682)      (11,511)
Interest income                                          1,387         1,244         2,734
Gain on change in fair value of derivative               1,079         2,153         2,520
Other income, net                                        2,445         1,209         1,029
Loss before income taxes                                 (69,826)      (75,922)      (38,643)
Income tax benefit (expense)                             6,085         (11,256)      8,822
Net loss                                                 (63,741)      (87,178)      (29,821)
Incomeattributabletothenoncontrollinginterest       -             -             -
Net loss attributable to Trina Solar Limited           $ (63,741)    $ (87,178)    $ (29,821)
Loss per ADS*
Basic                                                  $ (0.90)      $ (1.23)      $ (0.42)
Diluted                                                $ (0.90)      $ (1.23)      $ (0.42)
Weighted average ADS outstanding*
Basic                                                    70,804,960    70,772,050    70,586,800
Diluted                                                  70,804,960    70,772,050    70,586,800
* "ADS" refers to any of our American depository shares, each representing 50
ordinary shares.
Unaudited Condensed Consolidated Statements of Comprehensive Income
(US dollars in thousands)
Net loss                                               $ (63,741)    $ (87,178)    $ (29,821)
Other comprehensive income (loss):
Foreign currency translation adjustments                 4,534         (877)         (3,874)
Comprehensive loss                                       (59,207)      (88,055)      (33,695)
Income attributable to non-controlling interest          -             -             -
ComprehensivelossattributabletoTrinaSolarLimited $ (59,207)    $ (88,055)    $ (33,695)





Trina Solar Limited
Unaudited Condensed Consolidated Balance Sheets
(US dollars in thousands)
                                         Mar.31      Dec.31      Mar.31

                                         2013         2012         2012
ASSETS
Current assets:
Cash and cash equivalents                $ 703,795    $ 807,276    $ 632,488
Restricted cash                            118,484      110,920      115,787
Inventories                                341,597      318,504      351,036
Project assets, current portion            7,926        7,960        9,235
Accounts receivable, net                   365,311      390,157      555,206
Current portion of advances to             61,966       57,846       67,196
suppliers, net
Prepaid expenses and other current         92,204       72,824       106,646
assets, net
Total current assets                       1,691,283    1,765,487    1,837,594
Property, plant and equipment, net         872,363      893,340      944,801
Project assets, net of current portion     19,980       23,398       5,062
Land use rights, net                       41,754       41,961       42,629
Advances to suppliers, net of current      76,878       86,993       123,286
portion
Investment in equity affiliates            10,961       10,961       7,753
Deferred income tax assets, net            47,333       41,048       19,038
Other noncurrent assets                    1,901        1,669        2,296
TOTAL ASSETS                             $ 2,762,453  $ 2,864,857  $ 2,982,459
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings, including
current                                  $ 830,844    $ 875,821    $ 501,599

portion of long-term borrowings
Accounts payable                           449,745      428,626      534,045
Convertible senior notes                   83,582       83,582       -
Accrued expenses and other current         88,649       91,126       116,941
liabilities
Total current liabilities                  1,452,820    1,479,155    1,152,585
Long-term bank borrowings, excluding       395,520      415,150      518,840
current portion
Convertible senior notes                   -            -            118,006
Accrued warranty costs                     68,077       65,780       62,467
Other noncurrent liabilities               22,544       22,987       16,873
Total liabilities                          1,938,961    1,983,072    1,868,771
Ordinary shares                            40           40           39
Additional paid-in capital                 657,908      656,944      653,002
Retained earnings                          151,654      215,395      452,130
Accumulated other comprehensive income     13,740       9,206        8,317
Total Trina Solar Limited shareholders'    823,342      881,585      1,113,488
equity
Non-controlling interest                   150          200          200
Total equity                               823,492      881,785      1,113,688
TOTAL LIABILITIES AND EQUITY             $ 2,762,453  $ 2,864,857  $ 2,982,459



For further information, please contact:

Trina Solar Limited                   Brunswick Group

Terry Wang, CFO                         Ilse Schache

Phone: +  (86) 519-8548-2009            Phone: + (86) 10-6566-2256
(Changzhou)
                                        Email: trina@brunswickgroup.com

Kevin Zhang, Investor Relations

Phone: + (86) 519-8517-6093 (Changzhou)

Email: ir@trinasolar.com



SOURCE Trina Solar Limited

Website: http://www.trinasolar.com