Friday, June 13, 2008

UPDATE 1-Trina Solar sees profit margin growth (TSL)

Still long. This is timely (14 minutes old).
From Reuters via The Guardian:

* Trina CFO says profit margins will widen in second half
* Trina considering debt or equity offerings to fund growth (Adds details on silicon, expansion plans)
NEW YORK, June 13 (Reuters) - Solar products maker Trina Solar Ltd expects its profit margins to widen in the second half of 2008 as its costs for silicon begin to decline, Chief Financial Officer Terry Wang told Reuters on Friday.
That decline in the cost of silicon, which is used to turn sunlight into electricity inside photovoltaic solar cells, will be sharper than any potential declines in prices for Trina's products, he said.
"We believe the silicon cost on a weighted average will decrease greater than the average selling prices," Wang said.
Last week, Trina shares slumped after it said its second-quarter margins could be squeezed by an expected 5 percent to 10 percent increase in silicon costs....MORE