With its latest release of financial information, First Solar (FSLR), a manufacturer photovoltaic solar modules just demonstrated that focusing on green, sustainable technology has wild profit potential. The company announced a 57 percent increase in quarterly profits.

First Solar has headquarters in Tempe, Arizona with manufacturing plants in Ohio, Germany and Malaysia. And, as the company continues to expand its plant capacity sales continue to increase at a startling rate. “Second-quarter net income increased to $69.7 million, or 85 cents per share, exceeding analysts’ average estimate of 57 cents a share,” according to Reuters.

The company has focused on producing photovoltaic cells that use thin-film cells which makes the product “. . . more economical, tolerant of a wide range of conditions, but less efficient at converting light to electricity.”

Apparently much of the company’s recent success comes from Malaysia where its first two production lines in the country have been growing faster than anticipated. The weak dollar, lowering material costs and improvements in converting sunlight to energy also are driving growth.

But if you’re in the United States don’t rush out looking to buy a set of solar panels. Right now First Solar is focused on projects at the utility company level, which sometimes are required to generate 20% of their power from renewable sources.

Taking a look at First Solar’s stock growth over the past year sums up its success pretty well:

First Solar claims that it has the “. . . lowest manufacturing cost per watt in the industry, $1.14/watt for the first quarter of 2008.”

It’s encouraging to see a company focused on alternative energy because it will inspire others to compete and seek additional inroads before the industry becomes crowded. That said, demand for renewable energy is sure to continue skyrocketing just as oil supplies dwindle.

Related:

Entry was posted on Wednesday, July 30th, 2008 at 9:37 pm under Green Technology.

Read more entries by Matt Jansen.
Stumble It!