31 October 2011

First Solar’s sales rise 89% in Q3 to $1bn 

For third-quarter 2011, First Solar Inc of Tempe, AZ, USA, which manufactures thin-film photovoltaic modules based on cadmium telluride (CdTe) as well as providing engineering, procurement and construction (EPC) services, has reported net sales of $1006m, up 89% on $533m last quarter and up 26% on $798m a year ago.

Net income was $196.5m ($2.25 per diluted share), up from $61.1m ($0.70 per diluted share) last quarter and $176.9m ($2.04 a year ago). During the quarter, cash and marketable securities rose by $279m, from $515m to $795m.

“First Solar’s performance in the quarter reflects our superior technology, strong execution capability, and integrated business model — all of which have enabled us to weather a difficult market environment relatively well,” says chairman & interim CEO Mike Ahearn. “Going forward, our goal is not just to survive the current environment, but to transcend it by creating and expanding markets worldwide that do not depend on today's subsidy programs. This requires that we re-focus our strategy and commit our resources to solving the pressing energy needs that exist in much of the world,” he adds. 

Despite the revenue growth in Q3, First Solar has again reduced its guidance for full-year 2011 net sales to $3–3.3bn (after previously reducing the guidance of $3.7–3.9bn given last December to $3.7–3.8bn in late February to $3.6–3.7bn in August). However, this still represents growth of 23% on 2010’s $2.6bn. Likewise, after being cut from May’s guidance of $900–970m to $900–960m in August, operating income guidance has been cut to $650–760m. After being cut from May’s guidance of $9.25–9.75 to $9.00–9.50 in August, guidance for earnings per diluted share has been cut to $6.50–7.50. Manufacturing start-up expenses should be about $35m and factory ramp costs should be $10–12m. 

In preparation for 2012, the firm is reducing capital expenditures and evaluating opportunities to reallocate overhead expenses to fund increased investments in market development, sales, and R&D.

*On 25 October, First Solar said that its board of directors had asked its chairman & founder Mike Ahearn to serve as interim CEO. Rob Gillette is no longer CEO. Gillette originally replaced Ahearn as CEO when he was appointed in September 2009. “The board of directors believes First Solar needed a leadership change to navigate through the industry turmoil and achieve our long-term goals,” says Ahearn. The board of directors has formed a search committee and is initiating a search for a permanent CEO.

See related items:

First Solar’s Q2 sales fall 6% to $533m

First Solar’s sales drop 7% in Q1; 2011 guidance cut

First Solar grows revenue 24% in 2010, despite drop off in Q4

First Solar’s sales rise 36% in Q3 to $798m

Tags: First Solar Thin-film photovoltaic CdTe

Visit: www.firstsolar.com