Trina Solar sees shares rise despite 70% drop in profits for 2Q

Trina Solar (TSL.NYSE) reported a 70% fall in second-quarter earnings due to rising costs, below analysts’ expectations, Dow Jones reported. The company reported a profit of US$11.8 million, down from $US38.7 million a year earlier. However, shares in Trina nevertheless rose 10% to US$14.33, after Trina’s CFO told investors during a conference call that a worrisome decline in sales prices for the company’s products appears to have flattened out. Solar companies have struggled over the last 12 months as selling prices have continued to fall in key markets, and most companies have been unable to reduce costs quickly enough to keep up. Trina’s profit margin fell to 17% from 32.1% the previous quarter with an 84% increase in overhead costs. Trina shipped 396 megawatts worth of solar capacity in the second quarter, up 78% year-on-year. The company expects that figure to rise to 480-520 megawatts in the third quarter.