First Solar Eclipses Previous Sales Numbers, Looks to Bright Future

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Researched by Industrial Info Resources (Sugar Land, Texas)--First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona) announced at the start of August that it has more than doubled net sales for the second quarter of 2012 over the previous quarter and over the same period last year. Net sales were $957 million, an increase of $460 million from the first quarter of 2012 and $425 million from the second quarter of 2011. The increases were primarily due to an increase in the number and size of projects under construction. The company's good fortunes are running counter to those of some competitors.

For more information, see July 24, 2012, article - Falling Solar Panel Prices Hit U.S. Solar Development.

"Despite market uncertainties, First Solar delivered strong performance in the quarter," said Jim Hughes, CEO of First Solar, the day the results were announced. "Looking forward, we are confident we have the right long-term strategy and the right platform to enable long-term growth and value creation. We believe that by executing our strategic roadmaps and completing our restructuring program, we can achieve our targets of 2.6 to 3 giga-watts (GW) of sales in sustainable markets, earning a return on invested capital of 13% to 17% by 2016." One of First Solar's largest projects is Antelope Valley Solar Ranch 1 in California.

Some of the sales growth is directly related to government policy. Until 2009, there were no solar projects on public lands, but there are now 17 such projects that will provide 6 GW of solar energy when they are complete--and there appears to be more on the horizon. Last month, the U.S. Department of the Interior published a plan for solar energy development in six Western states, covering nearly 285,000 acres of public land in 17 solar energy zones, in Arizona, California, Colorado, Nevada, New Mexico and Utah.

"This blueprint for landscape-level planning is about facilitating faster, smarter utility-scale solar development on America's public lands," said Interior Secretary Ken Salazar during a conference call announcing the plan. "This is a key milestone in building a sustainable foundation for utility-scale solar energy development and conservation on public lands over the next two decades."

"The U.S. Southwest is home to some of the best solar resources in the world," said Rhone Resch, the president and CEO of Solar Energy Industries Association, in a statement. "It's a region universally recognized for its enormous potential to enhance our energy security. Consequently, the administration set a goal to permit 10 GW of additional renewable energy projects on public lands by the end of this year. The U.S. solar industry is ready to meet that challenge."

Industrial Info is tracking 23 active projects in North America, Chile and Australia worth $12.7 billion in which First Solar is a direct participant, EPC contractor or project developer. For more information, see May 10, 2012, article - Tenaska Enters Renewable Power Industry with California Projects; May 9, 2012, article - Australian Power Projects Under Construction Total More Than $3 Billion, May 8, 2012, article - Solar Giants form Global Alliance; and February 10, 2012, article - MidAmerican Energy to Add 500 Megawatts of Solar Power in California by End of 2014.

For more information, visit Industrial Info's North American Power Project Database.

View Project Report - 6005934

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.