In its financial guidance for the third quarter of 2011, Canadian Solar has downgraded its expectations for its gross margin, following a 'weaker than normal financing environment'.
Due to the lower average selling prices, the company said it expects its gross margin for the third quarter will be in the range of two to five per cent compared to prior guidance of nine to 12 per cent.
It did say that it expects shipments to be in line with prior guidance of 350MW to 360MW despite broader weakness experienced in the solar market worldwide. It also noted that it saw strength in customer demand return at the end of the third quarter of 2011.
Canadian Solar said that demand was initially lower earlier in the third quarter as customers appear to have been waiting as long as possible before committing to purchases given continued pressure on average selling prices throughout the solar supply chain. This was compounded by the weakened financing environment.
In August, the company recorded second quarter net revenue of $481.8m, a 46.6 per cent increase on the same period last year when the figure was $328.7m.