Canadian Solar takes 1Q forex loss of $18M-$20

NEW YORK

Canadian Solar Inc. said Tuesday that depreciation of the euro to the dollar will result in a pretax foreign exchange loss of between $18 million and $20 million.

The solar cell manufacturer also said first-quarter module shipments should increase slightly more than expected to between 189 and 191 megawatts, with gross margins of between 13 and 13.5 percent.

Company CFO Arthur Chien said Canadian Solar has made enough investments to temper further depreciation in the euro.

"We have since taken actions to significantly increase our currency hedging, with approximately 85 percent of our expected Euro exposure for the second quarter of 2010 now protected," Chien said in a statement.

Company shares increased 40 cents, or nearly 2 percent, to $21.33 in Tuesday trading.