25 February 2011

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

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 revenue for 2010 of $2,564m, up 24% on 2009’s $2,066m.

Fourth-quarter 2010 revenue was $610m, down 24% on Q3’s $797.9m, but this was due mainly to the timing of system sales and the December implementation of 2011 pricing (partially offset by an increase in volume). It was also down 5% on $641m a year ago, due to decreased systems revenue and reduced module prices.

Q4 net income was $156m ($1.80 per diluted share), down from $177m ($2.04 per diluted share) in Q3, driven mainly by the lower revenue and increased expenses (rising from $110.3m to $131.1m), partially offset by higher gross margin. However, it was up from $141.6m ($1.65 per diluted share) a year ago, driven mainly by higher module production and lower module cost per watt, partially offset by reduced module average selling prices and increased expenses (up from $121.5m). Full-year 2010 net income has risen from 2009’s $640m ($7.53 per diluted share) to $664m ($7.68 per diluted share).

During 2010, First Solar cut module manufacturing cost 11% year-on-year to $0.75/Watt by Q4. Module conversion efficiency rose 0.5% year-on-year to 11.6%, and line throughput rose 17% year-on-year to 62.6MW (with operating and announced capacity increasing to 2.9GW by 2012). Total production in 2010 was 1.4GW, bringing First Solar’s cumulative production to more than 3GW.

Also during 2010, First Solar built the largest operational solar PV plants in both the world (80MW, in Sarnia, Canada) and the USA (48MW, Copper Mountain, Nevada), while the pending sale of the Agua Caliente project to NRG will be the largest PV facility in the world (290MW) when completed in 2013. The firm also acquired NextLight and Edison Mission Group to expand its North American captive project pipeline to 2.4GW

“In the fourth quarter the operations team executed well, and we sold 400MW of projects in North America, positioning us to achieve our 2011 growth goals,” says CEO Rob Gillette. “We have good demand visibility in 2011 and a broader geographic reach, which gives us confidence in our ability to sell the 2GW that we plan to produce,” he adds.

First Solar is reducing the top end of its guidance for net sales in 2011 from the $3.7–3.9bn forecast in mid-December to $3.7–3.8bn (up 46% on 2010). However, it is increasing its guidance for operating income from $875–975m to $910–980m, and for earnings per fully diluted share from $8.75–9.50 to $9.25–9.75 (including $60–70m of manufacturing start-up expenses and $15–20m of factory ramp costs). The firm maintains its forecast for total capital spending of $1.0–1.1bn and operating cash flow of $1.0–1.1bn.

See related items:

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

First Solar revenue grows just 3.5% to $587.9m in Q2

Cd PV maker First Solar’s profit rises in Q1 despite 11% dip in sales

First Solar grows 33% sequentially, but project development hits profits

Tags: First Solar Thin-film photovoltaic CdTe

Visit: www.firstsolar.com

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