Canadian Solar (CSIQ) is out tightening the shipment guidance after the bell today from the previously expected 180 – 190MW range to 189 – 191MW, but is expecting an $18 – 20 million forex hit in the quarter due to the depreciation of the Euro against the US dollar.  They expect gross margins at around 13%.  CEO Shawn Qu expects a strong quarter this quarter as well and indicated the company will better hedge against currency fluctuations next quarter.

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CGO Arthur Chien commented: “Demand for our products was very strong in Q1 and we were able to maintain our raw materials prices as well as our processing costs within the expected range for the quarter. The Euro depreciated dramatically during the quarter and we did not have adequate currency hedging to cover our Euro exposure. We have since taken actions to significantly increase our currency hedging, with approximately 85% of our expected Euro exposure for the second quarter of 2010 now protected.

Shares of CSIQ are taking a hit in after hours trading down 10% and taking out key support of the 200 day moving average at $20.