Canadian Solar to Report First Profitable Year Since 2010

Canadian Solar Inc. (CSIQ), the best-performing solar manufacturer last year, expects to report its first annual profit since 2010 and is seeking to raise capital after fourth-quarter panel shipments exceeded its forecast.

Canadian Solar shipped 605 megawatts to 620 megawatts of panels in the fourth quarter, compared with a November forecast of 480 megawatts to 500 megawatts, the Guelph, Ontario-based company said today in a statement announcing preliminary results. Shipments for the year will be about 1.9 gigawatts.

Increasing demand is pulling the solar industry out of a two-year slump brought on by a global oversupply that ate into earnings. Canadian Solar expects to report net income for the fourth quarter and the full year. It posted earnings of 56 cents a share in the third quarter, its first profit since mid-2011.

Gross margins, a measure of profitability after manufacturing costs, are expected to be 16 percent to 18 percent in the fourth quarter, up from an earlier forecast of 13 percent to 15 percent. Revenue will be $510 million to $520 million.

The company said in a separate statement that it’s offering 2.6 million shares and $100 million in convertible notes due in 2019. It may use the proceeds to expand production capacity and build solar farms.

Canadian Solar increased more than eightfold in 2013, the most in the Bloomberg Industries Global Large Solar Energy Index.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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