UPDATE 2-Canadian Solar says projects to offset U.S. duties impact

Wed Aug 13, 2014 11:14am EDT
 
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* Expects 3rd-qtr margin of 19-21 pct vs 19 pct in Q2

* Expects panel shipments to rise to 720-750 MW in 3rd-qtr

* Revenue jumps 64 pct to $623.8 mln in 2nd-qtr

* Shares rise as much as 19 pct (Adds analyst, executive comments, updates shares)

Aug 13 (Reuters) - Canadian Solar Inc said it expected its more profitable business of building solar power plants to help blunt the impact of a fall in margins in the United States due to the imposition of duties on solar products made in China and Taiwan.

Shares of the company, which also reported its fourth-straight quarterly profit, rose as much as 19 percent in morning trade on heavy volumes.

The United States last month extended tariffs against China-made solar products to those made in Taiwan, plugging a loophole that allowed Chinese solar companies to use factories in Taiwan to bypass the duties.

Canadian Solar was using factories in China to ship products to the United States and the company's margins had shrunk after the duties were levied, Chief Executive Shawn Qu said on a conference call.

Qu said lower margins in the United States would be offset by higher revenue and profits in its solar projects, or total solutions, business.   Continued...