Trina Solar Announces Q2 Shipments 395-397MW vs 430-450MW Prior Guidance

Trina Solar Limited TSL announced today the following updates to its previous guidance made for the quarter ended June 30, 2011. Despite achieving record shipment volumes in the second quarter, the Company estimates its solar module shipments in the second quarter to be in the range of 395 MW to 397MW, compared to the Company's previous guidance of 430 MW to 450 MW for the reasons discussed below. Additionally, for the second quarter 2011, the Company estimates: - Gross margin relating to its in-house wafer production and module production to be approximately 20%, compared to the Company's previous guidance of in the mid 20s in percentage terms; and - Overall gross margin to be in the range of 17.0% to 17.5%, compared to the Company's previous guidance of in the low 20s in percentage terms. "While shipment volumes in the second quarter were our highest ever, sales were adversely impacted by extended slower demand and high industry inventory due in part to recently issued regulatory revisions and reduction in solar subsidies in Italy," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "We expect a significant improvement in production costs and an increase in shipment volumes in the third quarter." "As market demand conditions improve, we see a significant increase in pipeline from our distributors and large commercial and utility segment customers across Europe and North America. We are in discussions with new and existing customers to secure a growing number of sales agreements that cover the second half of the year." Based on its demand outlook for the second half of 2011, the Company reiterates its expectation for its full year 2011 PV module shipments of between 1.75 GW to 1.80 GW, representing an increase of 65.6% to 70.3% from 2010.