Suntech reports Q2 2010 results

SAN FRANCISCO, USA & WUXI, CHINA: Suntech Power Holdings Co. Ltd, the world's largest manufacturer of crystalline silicon solar panels, has announced financial results for its second fiscal quarter ended June 30, 2010.

Q2 2010 highlights
* Total net revenues were $625.1 million in the second quarter of 2010, representing 6.3 percent growth sequentially and 94.8 percent year-over-year.
* Total PV shipments increased 11.9 percent sequentially and 181.7 percent year-over-year.
* Gross profit margin for the core wafer to module business was 20.4 percent in the second quarter of 2010.
* Consolidated gross profit margin was 18.2% in the second quarter of 2010.
* GAAP net loss attributable to holders of ordinary shares was $174.9 million, or $0.97 per American Depositary Share (ADS). Each ADS represents one ordinary share. The non-cash impairment charges and provisions related to thin film and Shunda had a negative impact of $1.00 per diluted ADS.
* Achieved 1.4GW of PV cell and module production capacity at the end of the second quarter of 2010. Suntech announced new capacity expansion to reach 1.8GW of PV cell and module production capacity by the end of 2010.
* Increased 2010 annual shipment target from 1.3GW to 1.5GW, which represents over 113 percent year-over-year shipment growth.

"The second quarter was another period of robust multi-market demand," said Dr. Zhengrong Shi, Suntech's chairman and CEO. "Strong operational execution ensured that we achieved our 1.4GW capacity target, which drove higher than expected shipment and net revenue growth."

"We delivered greater shipments to valued customers across Germany and other European markets including Italy, France, Benelux and the Czech Republic. Our investments into our North American expansion continued to bear fruit as we broadened market share and prepared for US-based manufacturing that will commence in the fourth quarter.

"We also secured supply agreements to several large, high profile projects in emerging markets including Thailand, India and Israel where our globally respected brand, reliable product performance and deep sales channels have provided a solid foundation to form new partnerships."

"Despite successful sales expansion and strong execution during the second quarter, our financial results bear the significant impact of our Shanghai facility restructuring and Shunda Holdings investment impairments. These were necessary adjustments to make, and they have no impact on our core manufacturing operations. Now that they are behind us, we are in a better position to address the growth we are expecting in our core business," Dr. Shi continued.

"With an outlook of ongoing growth in solar demand, we have decided to accelerate the next phase of capacity expansion and now target to achieve 1.8GW of cell and module capacity by the end of 2010. This will enable us to increase our 2010 shipment target from 1.3GW to 1.5GW to help support our growing global portfolio of Suntech customers and drive market share expansion."