Boston, MA 04/17/2014 (wallstreetpr) – Trina Solar Limited (ADR) (NYSE:TSL) expects first quarter solar product shipment to decline. However, the Chinese solar-power products company expects shipments in full-year 2014 to be strong just as it predicted in the previous guidance.
The first quarter shipments are expected to suffer from the hitches in the European markets. The issues in Europe stem from minimum import prices, but EU members are expected to settle the issue before long.
First quarter shipment
Trina Solar Limited (ADR) (NYSE:TSL) expects to ship between 540 and 570 megawatts capacity of panels in the first quarter. The company previously expected to ship between 670 and 700 megawatts of solar panels capacity. Nonetheless, the settlement of the solar import issues in Europe is expected to ease pressure on the company and the stock.
Full-year shipment
Although Trina Solar Limited (ADR) (NYSE:TSL) revised first quarter shipment outlook, it maintained the outlook previously issued for the full-year 2014. On that note, the company expects to ship between 3.6 and 3.8 gigawatts of panel capacity across its domestic and global markets. The company expects demand in Europe and many of its global markets to be strong this year, thus fueling higher panel shipments.
Higher profit margins
Trina Solar raised its gross margin for the first quarter to between 18 and 20 percent, up from around 15 percent in the previous outlook. The company stated that the move to increase gross margin guidance stemmed from the higher average prices of solar products around the world.
However, to improve earnings, the company will need to maintain the curb on its expenses while expanding to markets that attract lower overhead costs. Moreover, continued research on effective manufacturing methods of solar power products should help the company improve earnings.
Market with a future
Trina Solar Limited (ADR) (NYSE:TSL) expects robust business in the future as energy companies turn to alternative power solutions such as wind and solar to comply with regulatory requirements. For that reason, Trina Solar seeks to expand its presence in emerging markets where the potential for the solar market is huge.
