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Canadian Solar Expects 2019 Financial Results To Be Lower Than 2018

Canadian Solar Inc. (CSIQ) announced the company currently expects its net profit for 2019 to be lower than 2018. Total revenue for the full year 2019 is expected to be in the range of $3.5 billion to $3.8 billion. Total module shipments are expected to be in the range of approximately 7.4 GW to 7.8 GW.

Shawn Qu, CEO, said: "The acceleration of certain high profit project sales also contributed to our success in 2018. This acceleration, however, will result in a reduction in solar project sale revenue and profit in 2019. And while we have a strong 2.9 GWp late-stage solar project pipeline, due to the typical project development cycle, we expect to realize sales for the majority of these late-stage projects in 2020 or later. This will likely create a temporary pullback in 2019 compared to 2018. Overall, while we expect 2019 financial results to be lower than 2018 due to the timing issues, this does not change our view on the long-term health, growth and profitability of our core business. We expect a rebound in project sales in 2020 and beyond given our robust project pipeline."

The company expects the net profit for the first quarter of 2019 to be low or negative. Total revenue is expected to be in the range of $450 million to $480 million. Total solar module shipments are expected to be in the range of approximately 1.3 GW to 1.4 GW.

The company noted that its profit in subsequent quarters will likely recover from the first quarter of 2019 level, as module and project sales increase.

For the fourth-quarter, non-GAAP adjusted net income attributable to Canadian Solar was $99.5 million, or $1.61 per diluted share. Net revenue was $901.0 million, compared to the revised fourth quarter guidance of $850 million to $900 million. Total solar module shipments were 1,951 MW, compared to the revised fourth quarter guidance of 1.9 GW to 1.95 GW.

For fiscal 2018, non-GAAP adjusted net income attributable to Canadian Solar was $199.4 million, or $3.28 per share. Net revenue was $3.74 billion, compared to $3.39 billion in 2017. Total solar module shipments were 6,615 MW, compared to 6,828 MW in 2017.

Canadian Solar also announced the appointment of Arthur (Lap Tat) Wong as an independent director of the company, effective March 8, 2019, which increased the size of the Board from five to six directors. Wong currently serves as an independent director and chair of the audit committee of China Automotive Systems, Inc., Daqo New Energy Corp., and China Maple Leaf Educational Systems Limited.

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