Canadian Solar Provides Business Outlook, Sees EU And China Trade Deal As Positive

Loading...
Loading...
The Company expects module shipments to Japan to account for approximately 35%-40% of total module shipments in the third quarter of 2013. In addition, it also expects to continue to make further inroads into other key emerging markets in the Americas, Asia and the Middle East. The Company expects its module shipments to Europe will remain at the same level as in the second quarter of 2013, as it continues to adopt a conservative approach in response to the uncertainty in trade and solar energy feed-in-tariff policy in that region. The Company views the recent resolution of the trade dispute between the European Union (EU) and China as positive. The Company is in the process of concluding its own undertaking agreement with the EU and is reviewing its business strategy in that region. Canadian Solar has an extensive sales network and a strong brand reputation in Europe and it expects to maintain its leadership position in this market once the execution details are clarified. Canadian Solar's diversified global sales channels allow it to take such a conservative approach in Europe without reducing the Company's overall shipment volume and profit margin. As discussed above, three of the Company's solar power projects in Ontario, Canada - William Rutley, Brockville 2, and Burritts Rapids - are in commercial operation and have been generating stable feed-in-tariff income for the Company. The Company has been working with the end buyer of these projects on acceptance tests before completing these sales. The Company expects to realize approximately $60M additional revenue for each project once the transactions are completed. The Company cannot determine if these transactions can be closed before the end of the third quarter of 2013 and as a result, it has not factored the sale of any of these projects into its third quarter 2013 guidance. The Company has recently received the limited notice to proceed (LNTP) for construction of the Samsung 130 MW utility-scale solar power plant in Haldimand County, Ontario which is expected to begin construction in the fourth quarter of 2013, with the facilities expected to be fully operational in 2015. Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, remarked: "We are pleased with our progress to date in the execution of our strategy, and have no intention of letting up. Clearly, the industry is emerging from a very challenging period, with improved pricing power and growing demand. As we move forward our strategic direction remains the same. We will maintain our focus on preserving our cost leadership while ensuring the high quality of our solar products and solutions. We will also continue to work hard to differentiate our business model, expand our customer base and global footprint. These efforts have enabled Canadian Solar to emerge in a strong position with exciting prospects for future profitable growth. Our near term goal is clear: return Canadian Solar to profitability on a full year basis for 2013. Based on our existing pipeline and planned project sales we are confident in our ability to achieve this goal."
Loading...
Loading...
Posted In: NewsGuidance
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...