Trina Solar Announces Third Quarter 2013 Results

               Trina Solar Announces Third Quarter 2013 Results

PR Newswire

CHANGZHOU, China, Nov. 19, 2013

CHANGZHOU, China, Nov. 19, 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 third quarter of 2013.

Third Quarter 2013 Financial and Operating Highlights

  oSolar module shipments were approximately 775 MW during the third quarter
    of 2013, an increase of 19.8% from the second quarter of 2013
  oNet revenues were $548.4 million, an increase of 24.4% from the second
    quarter of 2013
  oGross profit was $83.4 million, an increase of 62.9% from the second
    quarter of 2013
  oGross margin was 15.2%, compared to 11.6% in the second quarter of 2013
  oThe Company recorded an accounts receivable provision of $9.9 million in
    the third quarter of 2013
  oOperating income was $6.0 million, compared to an operating loss of $23.9
    million in the second quarter of 2013
  oOperating margin was 1.1%, compared to negative 5.4% in the second quarter
    of 2013
  oNet income was $9.9 million, compared to a net loss of $33.7 million in
    the second quarter of 2013
  oEarnings per fully diluted American Depositary Share ("ADS" and each ADS
    represents 50 of the Company's ordinary shares) was $0.14, compared to
    loss per fully diluted ADS of $0.47 in the second quarter of 2013

"I am pleased to report that we have returned to profitability and delivered a
better-than-expected performance across a number of key operating metrics. Our
third quarter module shipments exceeded the high end of our expectations by
almost 100 MW, driven by strong demand across most of our key markets," said
Mr. Jifan Gao, chairman and CEO of Trina Solar. "While average selling prices
("ASPs") and polysilicon costs continue to stabilize in the third quarter,
consolidation in the solar industry will also continue as it aligns more
closely with supply. As a result of our ongoing efforts in improving our
operational efficiency and controlling manufacturing costs, we achieved a
further reduction in non-silicon costs, which contributed to notable
quarter-on-quarter margin improvement.

"In the third quarter we saw continued strong demand in our key markets,
driven in particular by increasing demand in China, North America, Japan and
the UK, where we have further strengthened our leading positions. In the
meantime, we continue to successfully achieve our aim of diversifying our
geographical footprint, with non-EU markets now comprising a majority of our
sales. We expect this diversification will continue to support sustainable
growth in volume and revenues.

"Our decades-long investment in building a premier reputation globally for
quality, reliable products and services has also produced great results in the
domestic market, further enhanced by favorable industry conditions and
regulatory environment. We have experienced a strong and growing demand for
our products in China, where we continue to be seen as a preferred business
partner.

"As a long-term goal, we are committed to investing in innovation and R&D to
promote the ongoing development of the solar industry. Our Changzhou PV
laboratory is one of the first PV laboratories in China to receive
accreditation from China's Ministry of Science and Technology as a State Key
Laboratory of PV Science and Technology. This is a clear endorsement of Trina
Solar's ongoing efforts and expertise in solar innovation and R&D. We remain
committed to the development of high-efficiency products tailored to the needs
of our customers, with Trinasmart being the most recent example of our ongoing
achievements on this front. We believe these efforts further enhance the
recognition of our brand.

"On regulatory developments, the agreement reached between Europe and China
that sets a minimum price for Chinese panels and a maximum cap on annual
shipments provides a degree of certainty in Europe. While Europe will continue
to be an important geographical region for sales and marketing, we are also
committed to geographical diversification and continued expansion, in order to
take advantage of favorable market conditions where they exist and limit
exposure to risks associated with other markets."

Recent Business Highlights

During the third quarter of 2013, the Company:

  oAnnounced that it received the new International Electrotechnical
    Commission (IEC) 61730-2 standard certification with Class A Fire Safety
    from TUV Rheinland for its new frameless PDG5 modules. Trina Solar is the
    first manufacturer in Asia to obtain this certification.
  oAnnounced the commercial availability of an enhanced version of its
    industry-leading Trinasmart modules, embedded with Smart Curve technology.
  oAnnounced that it supplied 7 MW of photovoltaic modules to Ikaros Solar, a
    leading company dedicated to the installation of green solar energy
    systems, for an agricultural project at Goose Willow Farm in the town of
    Abington in the UK.
  oAnnounced that it had redeemed, together with all accrued but unpaid
    interest, all remaining outstanding convertible senior notes due 2013 on
    July 15, 2013. With this redemption, Trina Solar has no outstanding
    convertible debt.
  oAnnounced that it would provide 1.1 million of its 72-cell PV
    multi-crystalline modules (a total of 345 MW in DC power; equivalent to
    approximately 250 MW AC) to the Copper Mountain Solar 3 project in Boulder
    City, Nevada, USA.
  oAnnounced that it held its 2013 annual general meeting of shareholders on
    September 3, 2013. Each of the proposals submitted for shareholder
    approval was approved.

Subsequent Events

Subsequent to the third quarter of 2013, the Company:

  oCommented on the filing of an antitrust and unfair trade practice lawsuit
    by Energy Conversion Devices against Trina Solar and other China-based
    solar manufacturers in the U.S. District Court for the Eastern District of
    Michigan.
  oAnnounced that Trinasmart solution won the 2013 Solar Industry Award in
    the System Integration category.
  oAnnounced the completion of a 453 KW solar PV system on the rooftop of
    Exhibit Resources in Raleigh.This project, commissioned in July, is one
    of the few third-party owned commercial rooftop projects completed in
    North Carolina without the SunSense incentive.
  oAnnounced that it entered into an agreement with Anesco to supply modules
    with a total generation capacity of 50 MW for use in projects across the
    UK in the third and fourth quarters of 2013. This is a continuation of a
    long-standing relationship between the two companies that has seen Trina
    Solar deliver over 90 MW since the turn of the year.
  oAnnounced that the Company's Changzhou PV laboratory has received
    accreditation from China's Ministry of Science and Technology as a State
    Key Laboratory to develop PV technologies.

Third Quarter 2013 Results

Net Revenues
Net revenues in the third quarter of 2013 were $548.4 million, an increase of
24.4% sequentially and 84.0% year-over-year. Total shipments were 774.6 MW,
compared to 646.6 MW in the second quarter of 2013 and 380.3 MW in the third
quarter of 2012. The sequential increase in shipments was primarily due to
robust demand from China, driven by a series of incentives introduced by the
Chinese government to stimulate domestic solar demand. In addition, the
substantial increase in sales in Japan driven by strong demand and company
efforts in that market also contributed to the increase in total revenue.

Gross Profit and Margin
Gross profit in the third quarter of 2013 was $83.4 million, compared to a
gross profit of $51.2 million in the second quarter of 2013 and $2.4 million
in the third quarter of 2012.

Gross margin was 15.2% in the third quarter of 2013, compared to 11.6% in the
second quarter of 2013 and 0.8% in the third quarter of 2012. The sequential
increase was primarily due to a modest increase in the ASP of modules and
decreases in costs per watt while the year-on-year increase in gross margin
was primarily due to decreases in costs that exceeded declines in the ASP of
modules.

Operating Expense, Income (Loss) and Margin
Operating expenses in the third quarter of 2013 were $77.4 million, an
increase of 3.1% sequentially and a decrease of 1.2% year-over-year. The
Company's operating expenses represented 14.1% of its third quarter net
revenues, a decrease from 17.0% in the second quarter of 2013 and 26.3% in the
third quarter of 2012. The sequential decrease reflected our continued efforts
to improve operational efficiency as we achieve bigger economies of scale.
Operating expenses included an accounts receivable provision of $9.9 million
and share-based compensation expenses of $1.4 million in the third quarter of
2013, compared to $8.7 million and $1.7 million, respectively, in the second
quarter of 2013.

As a result of the foregoing, operating income in the third quarter of 2013
was $6.0 million, compared to an operating loss of $23.9 million in the second
quarter of 2013 and an operating loss of $76.0 million in the third quarter of
2012. Operating margin was 1.1% in the third quarter of 2013, compared to
negative 5.4% in the second quarter of 2013 and negative 25.5% in the third
quarter of 2012.

Net Interest Expense
Net interest expense in the third quarter of 2013 was $12.0 million, compared
to $11.0 million in the second quarter of 2013 and $13.8 million in the third
quarter of 2012. The sequential increase in net interest expense was primarily
due to an increase in average bank borrowings in the third quarter of 2013.

Foreign Currency Exchange Gain (Loss)
The Company had a foreign currency exchange gain of $8.0 million in the third
quarter of 2013 net of changes in fair value of derivative instruments,
compared to a net loss of $2.2 million in the second quarter of 2013 and a net
gain of $18.2 million in the third quarter of 2012. This sequential net gain
was primarily due to the appreciation of the Euro against the U.S. dollar.

Income Tax Benefit
Income tax benefit was $4.9 million in the third quarter of 2013, compared to
$0.9 million in the second quarter of 2013 and $11.7 million in the third
quarter of 2012.The sequential increase is primarily due to the improved
operating results in the third quarter of 2013.

Net Income (Loss) and Earnings (Loss) per ADS
As a result of the foregoing, net income was $9.9 million in the third quarter
of 2013, compared to a net loss of $33.7 million in the second quarter of 2013
and a net loss of $57.5 million in the third quarter of 2012.

Net margin was 1.8% in the third quarter of 2013, compared to negative 7.6% in
the second quarter of 2013 and negative 19.3% in the third quarter of 2012.
Earnings per fully diluted ADS were $0.14 in the third quarter of 2013. The
impact of the additional accounts receivable provision was approximately $0.14
per ADS.

Financial Condition

As of September 30, 2013, the Company had $557.8 million in cash and cash
equivalents and restricted cash. Total bank borrowings were $1,101.7 million,
of which $965.6 million were short-term borrowings.The Company decreased its
long-term borrowings by $10.9 million to approximately $136.1 million as of
September 30, 2013, from $147.0 million as of June 30, 2013.

Shareholders' equity was $801.8 million as of September 30, 2013, an increase
from $791.2 million at the end of the second quarter of 2013.

Fourth Quarter and Fiscal Year 2013 Guidance

During the fourth quarter of 2013, the Company expects to ship between 760 MW
to 790 MW of PV modules.

The Company believes its overall gross margin for the fourth 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 mid-teens in percentage terms. Such guidance is based on the exchange rate
between the Euro and the U.S. dollar as of November 19, 2013.

For the full year 2013, the Company revises its previous PV module shipment
guidance of between 2.3 GW and 2.4 GW to 2.58 GW and 2.62 GW.

Operations and Business Outlook

Manufacturing Costs
In the third quarter of 2013, the Company continued its efforts to reduce
manufacturing costs, achieving a reduction of low 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 continued improvement in operational efficiency in the third
quarter of 2013 compared to the second quarter of 2013, the Company
experienced a decrease in silicon cost per watt in its module manufacturing
business quarter-on-quarter.

2013 Manufacturing Capacity
As of September 30, 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
Our 50 MW solar power plant project in Wuwei, Gansu continues to progress
well. The project connected to the grid on schedule in September 2013 and is
already generating a stable electricity output. Power generation also means
the plant is able to realize feed-in-tariff income once the operator processes
the payment commitment.. The project has attracted interest from a number of
potential buyers, and Trina Solar is currently engaged in discussions that may
or may not result in the sale of the assets, subject to which option offers
the greatest value for Trina Solar's shareholders. We will continue to keep
the market informed of any developments as appropriate.

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. U.S. ET on Nov. 19, 2013,
to discuss the results for the quarter ended September 30, 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 Yvonne Young, 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 9738-5661.

If you are unable to participate in the call at this time, a replay will be
available from 11:30 a.m. U.S. ET on November 19 through 11:59 p.m. U.S. ET on
December 3. To access the replay, dial +1 (855) 859-2056, international
callers should dial +1 (404) 537-3406, and enter the conference ID 9738-5661.

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
                                  Sep. 30,     Jun. 30,      Sep. 30,
                                  2013          2013          2012
Net revenues                      $ 548,386     $ 440,725     $ 297,974
Cost of revenues                    464,955       389,507       295,618
Gross profit                        83,431        51,218        2,356
Operating expenses
Selling expenses                    37,511        37,279        32,217
General and administrative          35,527        33,709        38,156
expenses
Research and development            4,360         4,085         7,934
expenses
Total operating expenses            77,398        75,073        78,307
Operating income (loss)             6,033         (23,855)      (75,951)
Foreign exchange gain (loss)        8,050         (2,626)       16,638
Interest expenses                   (13,355)      (11,507)      (15,597)
Interest income                     1,335         466           1,808
(Loss) gain on change in fair       (79)          451           1,558
value of derivative
Other income, net                   2,995         2,528         2,353
Income (loss) before income         4,979         (34,543)      (69,191)
taxes
Income tax benefit                  4,918         893           11,736
Net income (loss)                   9,897         (33,650)      (57,455)
Loss (income) attributable to       4             -             (5)
the noncontrolling interest
Net income (loss) attributable    $ 9,901       $ (33,650)    $ (57,460)
to Trina Solar Limited
Earnings (loss) per ADS*
Basic                             $ 0.14        $ (0.47)        (0.81)
Diluted                           $ 0.14        $ (0.47)        (0.81)
Weighted average ADS
outstanding*
Basic                               71,017,284    70,873,548    70,751,231
Diluted                             71,757,097    70,873,548    70,751,231
* "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)
                                  For the Three Months Ended
                                  Sep. 30,     Jun. 30,     Sep. 30,
                                  2013          2013          2012
Net income (loss)                 $ 9,897       $ (33,650)    $ (57,455)
Other comprehensive (loss)
income:
Foreign currency translation        (1,021)       (172)         1,263
adjustments
Comprehensive income (loss)         8,876         (33,822)      (56,192)
Loss (income) attributable to       4             -             (5)
non-controlling interest
Comprehensive income (loss)
attributable to Trina Solar       $ 8,880       $ (33,822)    $ (56,197)
Limited



Trina Solar Limited
Unaudited Condensed Consolidated Balance Sheets
(US dollars in thousands)
                                         Sep. 30      Jun. 30      Sep. 30
                                         2013         2013         2012
ASSETS
Current assets:
Cash and cash equivalents                $ 448,602    $ 546,816    $ 599,887
Restricted cash                            109,180      72,401       103,487
Inventories                                278,124      315,138      367,126
Project assets, current portion            58,948       52,772       6,660
Accounts receivable, net                   603,009      478,005      469,300
Current portion of advances to             65,518       64,053       70,046
suppliers, net
Prepaid expenses and other current         98,455       136,966      120,353
assets, net
Total current assets                       1,661,836    1,666,151    1,736,859
Property, plant and equipment,             838,841      852,793      903,083
net
Project assets, net of current             10,271       9,616        30,077
portion
Land use rights, net                       43,451       43,644       42,130
Advances to suppliers, net of current      69,405       66,013       98,739
portion
Investment in equity affiliates            12,899       10,963       14,618
Deferred income tax assets, net            62,411       50,607       33,130
Other noncurrent assets                    1,364        1,632        1,878
TOTAL ASSETS                             $ 2,700,478  $ 2,701,419  $ 2,860,514
LIABILITIES AND EQUITY
Current liabilities:
 Short-term borrowings, including
current portion of                       $ 965,569    $ 973,042    $ 689,742
 long-term borrowings
Accounts payable                           573,744      539,048      474,972
Convertible senior notes                   -            57,007       88,582
Accrued expenses and other current         122,316      97,251       122,985
liabilities
Total current liabilities                  1,661,629    1,666,348    1,376,281
Long-term bank borrowings, excluding       136,136      146,990      431,023
current portion
Accrued warranty costs                     76,924       71,964       67,550
Other noncurrent liabilities               23,765       24,736       15,963
Total liabilities                          1,898,454    1,910,038    1,890,817
Ordinary shares                            40           40           40
Additional paid-in capital                 661,304      659,619      656,801
Retained earnings                          127,905      118,004      302,573
Accumulated other comprehensive income     12,546       13,568       10,083
Total Trina Solar Limited shareholders'    801,795      791,231      969,497
equity
Non-controlling interest                   229          150          200
Total equity                               802,024      791,381      969,697
TOTAL LIABILITIES AND EQUITY             $ 2,700,478  $ 2,701,419  $ 2,860,514



For further information, please contact:

Trina Solar Limited                     Brunswick Group
Terry Wang, CFO                         Ilse Schache
Phone: +  (86) 519-8548-2008            Email: trina@brunswickgroup.com
(Changzhou)
                                        Phone: + (86) 10-6566-2256 (Beijing)
Yvonne Young
Head of Investor Relations
Phone: + (86) 519-8517-6878 (Changzhou)
Email: ir@trinasolar.com



SOURCE Trina Solar Limited

Website: http://www.trinasolar.com
 
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