November 15, 2012 / 11:10 AM / 5 years ago

Canadian Solar cuts full-year shipment view

(Reuters) - Solar products maker Canadian Solar Inc (CSIQ.O) lowered its shipments forecast for the year and said it took a charge in the third quarter to reflect higher import duties imposed by the United States.

The United States last week gave final approval to duties on billions of dollars of solar equipment imports from China, where Canadian Solar makes most of its products.

Solar firms have also taken a hit from a slide in prices due to global oversupply that has erased margins across the industry and forced some U.S. and European companies to shut shop.

Canadian Solar said it recorded a charge of $2.1 million related to the countervailing duty on its products imposed by the US Department of Commerce.

The company, which pays countervailing duties of 15.24 to 15.97 percent in the United States, said last week it would work with its cell supply partners outside of China to reduce the impact from U.S. duties.

Canadian Solar cut its full-year shipment forecast to a range of 1.5 gigawatt (GW) to 1.6 GW from its previous projection of 1.8 GW to 2.0 GW.

The company said gross margins are expected to be between 1 and 3 percent in the fourth quarter, down from 2.2 percent in the preceding quarter.

Fourth-quarter shipments are expected to be between 380 megawatts (MW) and 420 MW, compared with 384 MW in the third quarter.

Net loss slightly dipped to $43.7 million, or $1.01 per share, in the third quarter, from $43.9 million, or $1.02 per share, a year earlier.

Revenue fell 35 percent to $326 million.

Shares of Canadian Solar, valued at $101.85 million, have fallen 17 percent in the last year. They closed at $2.36 on Wednesday on the Nasdaq.

Reporting by Swetha Gopinath in Bangalore; Editing by Saumyadeb Chakrabarty

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