Canadian Solar Inc. (Guelph, Canada) has released financial results for the second quarter of 2012, reporting a 28% year-over year decline in revenues to USD 348 million, despite a 44% increase in module shipments to 412 MW.
The company also reported a -0.9% operating margin and a net loss of USD 25.5 million, reporting a USD 15.1 million interest expense and a USD 7.2 million foreign exchange loss. Canadian Solar notes that it consistently posts better margins than most competing solar photovoltaic (PV) manufacturers.
"We have clearly differentiated Canadian Solar as a Tier 1 partner of choice in the solar industry, with a greater level of margin stability and business visibility," states Canadian Solar Chairman and CEO Dr. Shawn Qu.
"We remain confident in the prospects for our business as we continue to expand our total solutions business and meet the needs of our customers worldwide. We expect to gain further market share as we deliver reliable, high-performance PV solutions, and expand sales of our high efficiency ELPS modules in key solar markets."
Emphasis on solutions business
Europe represented Canadian Solar''s most significant market during the quarter at 69% of sales, followed by North America at 16% and Asia at 15%, a marked change from the first quarter of 2012, when North America represented 45% of sales.
Canadian Solar states that it remains focused on the development of its Total Solutions business, and has acquired 140 MW of utility-scale PV projects in the United States since 2011.
Total module shipments during the second quarter of 2012 included 8.7 MW used in the Total Solutions business. Additionally, the company completed construction of an 11.5 MW PV plant in Stone Mills, Ontario, Canada.
Shipment forecast between 1.8 GW and 2.0 GW for 2012
Canadian Solar has predicted 390 to 420 MW of PV module shipments in the third quarter of 2012. For the full year 2012, the company''s shipment forecast remains between 1.8 GW and 2.0 GW, with a strong shipment pipeline in both the third and fourth quarters of 2012.
However, Canadian Solar notes that uncertain conditions in the global solar market and the larger economy may cause it to update this guidance at a later date.