Sector Glance: Trina Leads Solar Decline

Trina Solar shares fell $11.30, or 23 percent, to $37.58 in afternoon trading.

The company's profit margins -- which fell to 20.1 percent from 26.2 percent last year -- were hurt by lower selling prices and high polysilicon costs.

Banc of America analyst Eric Brown said in a note Wednesday he expects Trina Solar and its China-based solar peers to face profit-margin pressures due to high silicon prices due to intense competition for the feedstock, lower cell and module prices due to high supplies and limited differentiation.

As demand for solar products has intensified, driven by government incentives in Europe and the U.S., polysilicon prices have risen sharply. Despite lower profit margins, Trina Solar's profit still rose 87 percent as revenue more than doubled. Europe accounted for about 96 percent of its revenue.

Other solar companies followed its share-price decline. Solarfun Power Holdings Co. fell $1.36, or 12 percent, to $10.40; LDK Solar Co. fell $3.15, or 9.4 percent, to $30.45; and JA Solar Holdings Co. dropped $3.78, or 7 percent, to $50.27.