News

17 December 2009

 

CdTe PV maker First Solar forecasts 2010 sales of $2.7–2.9bn

First Solar Inc of Tempe, AZ, USA, which manufactures thin-film photovoltaic modules based on cadmium telluride (CdTe), says that, for 2010, it projects net sales of $2.7–2.9bn. Gross margin is expected to be 38% and operating margin 23-24%, influenced by a shift in revenue mix to the systems business (which includes $0.6-0.8bn of EPC/project development in addition to $2.1bn in modules).

The firm consequently expects to generate $730–790m of operating cash flow and $180–290m of free cash flow, after total capital spending of $500–550m (almost double the expected $260-275m in 2009) plus start-up expenses of about $25m to expand the firm's manufacturing center in Kulim, Malaysia.

Of the $500–550m in CapEx, First Solar plans to invest $365m in Malaysia to add eight production lines (in two production plants consisting of four manufacturing lines each), starting operation in first-half 2011. On the basis of First Solar’s third-quarter 2009 annual line run-rate of 53MW, the expansion is expected to increase manufacturing capacity by 424MW.

Together with the two-line factory in France being built with Paris-based EDF Energies Nouvelles (announced in July, and projected for full production in second-half 2011), First Solar expects to add 10 production lines during 2010–2011, raising capacity by over 48% from current levels. With the total number of lines to rise from 23 to 34, this should bring annual or announced production capacity to about 1.8GW by 2012 (based on current production levels).

First Solar began full commercial operation of its initial manufacturing line only in late 2004, and annual production capacity was not much more than 500MW as recently as 2008, before doubling to more than 1GW in 2009. Revenue more than doubled from $504m in 2007 to $1,246.3m in 2008, so 2010’s projection of $2.7–2.9bn is more than double that (after an expected $1.975-2.025bn for 2009).

“First Solar is expanding capacity to satisfy a global contracted and advanced pipeline of over 6 gigawatts from 2010-2012,” says CEO Rob Gillette. “In 2009 we increased our contracted North American pipeline by approximately 1.5GW, expanding our penetration in transition markets,” he adds. “This drives further capacity needs around a demand pool that is less volatile and more predictable than the traditional feed-in tariff-based markets.”

See related items:

First Solar becomes first PV firm to produce 1GW in a single year

First Solar raises full-year revenue guidance to high end of prior range

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Visit: www.firstsolar.com