Trina Solar Posts Adjusted Profit

Trina Solar(TSL Quote) posted an adjusted first-quarter profit of 2 cents a share that beat Wall Street estimates.

Analysts polled by Thomson Reuters were expecting a loss of 8 cents a share on $142.5 million in revenue. Quarterly revenue came in at $132.1 million. In the year-ago quarter, Trina earned 51 cents, or $12.9 million per American depositary share.

Counting items, the Changzou, China-based maker of solar products lost $10.6 million, or 44 cents a share, citing a $6.5 million tax liability accrued in the first quarter and a charge of $4.6 million associated with the cancellation of two polysilicon supply agreements.

"Our first quarter was adversely affected by unusually harsh weather in our key European markets, tightened credit conditions for our customers and the general slowdown in world economic activities," said Mr. Jifan Gao, chairman and CEO. "Improved conditions beginning in April have contributed to increasing customer deliveries and higher levels of new contracts and projects."

Solar module shipments were 48.8 MW (megawatts), compared to the company' s previous guidance of 50 MW to 55 MW, a decrease of 15.3% sequentially and an increase of 65.5% year over year.

Gross margin was 17.2%, exceeding the company's previous guidance of between 15% and 17%, compared to 9.6% in the fourth quarter of 2008.

Foreign currency exchange loss was $7.6 million in the first quarter, compared to a $3.2 million gain in the fourth quarter of 2008 and a $4 million loss in the first quarter of 2008. This loss was primarily due to the depreciation of the euro against the U.S. dollar in the first quarter.