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Trina Solar Warns Investors About Cloudy Q3 2012

November 13, 2012

A week before Trina Solar (TSL :NYSE) announced it would be releasing its Q3 2012 earnings results, the China-based solar manufacturer warned investors that the numbers would not be living up to the guidance they initially offered.

The downgrade on shipments is significant as Trina Solar is now offering a range of 375 megawatts (MW) to 385 MW versus the 450 MW to 480 MW previously stated.

Not surprisingly, Trina Solar will also revise its full-year shipments on the conference call next week.

Due to a provision for anti-dumping duties in the U.S. and a non-cash inventory write-down, overall gross margins will now be between 0% and 1.5% versus the middle-single digits previously offered.

In response to the fluctuating demand for solar panels, Trina Solar is reducing its headcount and concentrating its efforts where there is regional demand.

Whether these general actions are enough remove the dark clouds hanging over Trina Solar remains to be seen.

Shares of Trina Solar were down 12.19 percent in afternoon trading.

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