First Solar Announces Full-Year 2013 Financial Guidance

For 2013, FirstSolar expects total module shipments to be between 1.6GW and 1.8GW and net sales of $3.8 billion and $4.0 billion, including approximately $3.6 billion in net sales from systems sales. Consolidated gross margin is expected to be between 20% and 22%. Excluding up to $10 million in restructuring expense as previously announced, diluted EPS is expected to be between $4.00 and $4.50, and consolidated operating income is expected to be between $430 and $460 million.

The company expects to generate $0.8 to $1.0 billion of operating cash flow and plans for approximately $350 to $400 million in capital expenditures in 2013. Working capital is expected to decrease by between $50 and $200 million from 2012. The company noted that revenue recognition for the Desert Sunlight project is currently expected to begin in the second half of 2013 and conclude by late 2014. This assumption is reflected in the company’s 2013 guidance and 2014 outlook.

In addition to the 2013 detailed guidance, the Company also provided a summary outlook for 2014 and 2015 as follows:

First Solar’s 2014 net sales target is $3.5 billion to $4.0 billion, with EPS of $2.50-$4.00 and operatig cash flow of $500 million to $800 million on module shipments of 1.8 GW to 2.2 GW. First Solar’s 2015 net sales target is $4.2 billion to $4.8 billion, with EPS between $4.00 and $6.00 and operating cash flow between $800 million and $1 billion on module shipments of 2.3 GW to 2.7 GW.

First Solar CFO Mark Widmar provided the guidance and outlook during its 2013 Analyst Day event held in New York. Additionally, company executives discussed First Solar’s strategic goals, technology advances and competitive positioning relative to the company’s peers.