Canadian Solar Updates Expectations For Q1 2010
Canadian Solar Inc. (Nasdaq: CSIQ), one of the world's largest solar power companies, today announced that based on selected unaudited financial results, it now expects PV module shipments in the first quarter of 2010 to be approximately 189 MW to 191 MW, with gross margins at 13% to 13.5%. This compares to prior expectations for shipments of approximately 180 MW to 190 MW and gross margin in the mid-teens. The Company expects to incur a material net foreign exchange loss for the quarter, estimated at US $18 million to US $20 million pre-tax, due to the significant depreciation of the Euro against the U.S. dollar during the quarter.
Arthur Chien, CFO, said: "Demand for our products was very strong in Q1 and we were able to maintain our raw materials prices as well as our processing costs within the expected range for the quarter. The Euro depreciated dramatically during the quarter and we did not have adequate currency hedging to cover our Euro exposure. We have since taken actions to significantly increase our currency hedging, with approximately 85% of our expected Euro exposure for the second quarter of 2010 now protected."
Dr. Shawn Qu, Chairman and CEO commented: "Based on current market conditions and our order book, we expect continued strong demand in the second quarter of 2010. We expect to maintain a similar gross margin in Q2 2010 through supply cost control, internal process improvement and product pricing adjustments."
The above outlook is based on the Company's current views with respect to operating and market conditions, its current order book and customer' forecasts, which are subject to change. The risks to guidance also include changes in product pricing, availability and pricing of feedstock, and the project financing environment.
Additional information relating to the first quarter 2010 will be available when the Company reports its results.
About Canadian Solar Inc. (NASDAQ: CSIQ)
Canadian Solar Inc. is one of the world's largest solar companies. As a leading vertically integrated provider of ingot, wafer, solar cell, solar module and other solar applications, Canadian Solar designs, manufactures and delivers solar products and solar system solutions for on-grid and off-grid use to customers worldwide. With operations in North America, Europe and Asia, Canadian Solar provides premium quality, cost-effective and environmentally-friendly solar solutions to support global, sustainable development.
Source: Canadian Solar
