Trina Solar Ltd. fell to its lowest in more than three years after cutting its forecast for second-quarter shipments by about a fifth on project delays in China and the effect of U.S. anti-dumping duties.
Trina, the third-biggest solar cell maker and fourth-biggest solar panel maker, fell 10.5 percent to $4.84 at the close in New York.
Trina will take a second-quarter charge of as much as $71 million on late payments and foreign-exchange losses, the Changzhou, China-based company said today in a statement.
Sales may continue to slow this year for Trina and its peers as European demand slackens and increasing production capacity in the industry exacerbates a global oversupply, according to Gordon Johnson, an analyst at Axiom Capital Management in New York.
“We’ve been predicting Armageddon for some time,” Johnson said in an interview today. Solar booms in countries including Germany and Italy are winding down, and he doesn’t expect similar solar surges in new regions. “There are no countries left to bubble. There needs to be a massive reduction in capacity.”
Deliveries of solar panels will total 390 megawatts to 420 megawatts, down from previous guidance of 500 megawatts to 520 megawatts, Trina said. The gross margin for the quarter will probably be 7 percent to 9 percent, down from an earlier prediction of about 10 percent, it said.
“Shipment volume fell short of our targets as U.S. market uncertainty on the preliminary impact of the tariff resulted in stagnant demand in North America and the timing of several large projects in China was pushed to the second half,” Chairman and Chief Executive Officer Jifan Gao said.