The company also forecast a banner 2010 with solar module shipments in a range of 600 megawatts to 700MW, compared with 295MW to 305MW this year, as global demand improves.

The exchange gain was $9.7m versus a $17.3m exchange loss in third quarter 2008, when net income was $11.1m, or $0.31 cents a diluted share. Second quarter net income this year was $17.7m, or $0.49 cents a diluted share.

Third quarter revenue was $213.1m, down from $252.4m a year earlier, a reflection of lower solar product prices in a market still feeling effects of the global recession. Still, the result was a vast improvement over $114.2m in the second quarter this year.

“The significant increases in sales and earnings were the result of the successful implementation of our global sales strategy combined with our strong brand name recognition, cost control and effective supply chain management,” says Shawn Qu, chief executive of Canadian Solar.

Looking ahead to 2010, the company stronger demand for solar modules from all its traditional major markets including Germany, Italy, the U.S., the Czech Republic, South Korea and Spain. Shipments should also be robust to Canada, Japan and China.

Given the demand forecast, Canadian Solar plant to increase solar module production capacity from 820MW to one gigawatt by the end of April 2010, and to increase internal cell production capacity from 420 MW to 700 MW by June 2010. it also intends to “slightly increase” internal ingot and wafer capacity in 2010.

“Under this expansion plan, we expect to produce approximately 450 MW to 500 MW of solar cells internally, while outsourcing approximately 200 MW to 250 MW from our long-term solar cell partners,” the company says in a statement..