UPDATE 2-Trina profit tops estimates, co backs '09 view

* Q2 profit $0.71/ADS vs Wall Street view $0.37

* Q2 revenue down 26.5 percent to $150 million

* Backs full-year shipment view, to expand capacity

* Shares up 1.4 pct in extended trade
(Adds analyst, exec comments)

LOS ANGELES, Aug 17 (Reuters) - Chinese solar company Trina
Solar Ltd (TSL.N) posted a quarterly profit on Monday that beat
Wall Street expectations thanks to lower prices on its key raw
material, polysilicon.

Shares rose 1.4 percent in extended trade after the company
also maintained its full-year shipments outlook and said it
would expand production capacity by the end of this year.

"The fact they reaffirmed guidance tells us the solar
market continues to rebound in line with the company's
expectations," said Raymond James analyst Pavel Molchanov.

Solar power companies have suffered this year as the credit
crisis and a pullback in incentives in Spain and Germany have
led to a global glut of solar panels, driving down prices and
eroding companies' profits.

One bright spot, however, has been the decline in the price
of polysilicon.

Changzhou, China-based Trina posted a second-quarter net
profit of $18.9 million, or 71 cents per American Depositary
share, compared with a net profit of $17.1 million or 68 cents
per share, a year ago.

The company said that the combined effects of an accounts
receivable write-off and foreign currency exchange gain, was
about 30 cents per fully diluted ADS.

It was not immediately clear if those items were included
in the 37 cents a share analysts were expecting, according to
Reuters Estimates.

However, even taking into account those items, earnings
were ahead of expectations.

Revenue fell 26.5 percent to $150 million, about in line
with analysts' estimates and the company's own forecast.

Trina said gross margins were 27.4 percent, compared with
23 percent in the second quarter of 2008.

The company expects to ship between 90 megawatts to 110 MW
of photovoltaic panels in the third quarter, up from 64 MW of
shipments in the second quarter.

For the full year 2009, the company repeated expectations
to ship between 350 MW and 400 MW of solar panels and to reduce
its manufacturing costs by 15 percent to 20 percent.

Company chief executive Jifan Gao said in a statement that
he sees "market confidence" returning to the photovoltaic
sector due to government support and an improvement in
financing conditions.

"With greater visibility and a pickup in demand in the
market, we have therefore committed to capacity expansion by
the end of the year," Gao said.

Trina's shares rose 1.4 percent to $26.79 in extended trade
after closing at $26.42 on the New York Stock Exchange.
(Reporting by Laura Isensee, editing by Robert MacMillan and
Matthew Lewis)