SAN FRANCISCO, USA & WUXI, CHINA: Suntech Power Holdings Co. Ltd has announced its preliminary financial results for the second quarter ended June 30, 2010, including the impact of restructuring the Company's Shanghai manufacturing facility and impairment charges related to its investment in Shunda Holdings Co. Ltd, a manufacturer of polysilicon and silicon wafers.
Suntech expects total net revenues for the second quarter of 2010 to be in the range of $620 million to $630 million. Gross margin is expected to be in the range of 17.5 percent to 18.5 percent.
Dr. Zhengrong Shi, Suntech's chairman and CEO, said: "Strong top line results for the second quarter reflect extremely robust global demand for solar. Customers in Europe, Asia, the Middle East and the Americas are increasingly recognizing the benefits of adopting solar and are choosing Suntech as a key partner. Our expected operating results for the second quarter reflect our competitive advantages in these markets."
As a result of the depreciation of the Euro versus the USD during the period, Suntech expects the impact from foreign exchange loss net of hedging gains to be approximately $35 million for the second quarter of 2010, in line with previously announced expectations.
Restructure of Shanghai facility and impairment charges relating to Shunda Holdings
Due to the rapid cost reduction and improving competitiveness of crystalline silicon solar panels, Suntech has been restructuring operations at its Shanghai facility to focus on the manufacture of crystalline silicon solar cells.
As part of the restructuring, Suntech has ceased the manufacture of amorphous silicon thin film solar panels. As a result, Suntech expects to incur a thin film equipment non-cash impairment charge of approximately $50 million to $55 million in the second quarter of 2010.
Suntech also expects to incur non-cash charges of $106 million to $126 million in the second quarter of 2010 related to its investment and prepayments to Shunda. Due to debt obligations, Shunda is currently undergoing significant reorganization.
Dr. Shi said: "While the thin film and Shunda related charges will significantly impact our second quarter financial results, they have no bearing on our core manufacturing operations which are performing very well. Going forward, we will continue to focus on our primary mission of supplying the most reliable and high performance solar panels in the industry."
Suntech expects the total restructuring and impairment charges to have a negative impact of approximately $0.87 to $1.01 per American Depository Share (ADS) in the second quarter of 2010. Inclusive of the restructuring and impairment charges, Suntech expects the net loss for the second quarter of 2010 to be in the range of $147 million to $179 million, which corresponds to negative $0.82 to negative $1.00 per ADS.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.