Suntech reports Q4 and full year 2010 financial results

WUXI, CHINA: Suntech Power Holdings Co. Ltd, the world's largest producer of solar panels, announced financial results for its fourth fiscal quarter and full year ended December 31, 2010.

Q4 2010 highlights
* Total net revenues were $945.1 million in the fourth quarter of 2010, representing growth of 27.1 percent sequentially and 61.9 percent year-over-year.
* Total PV shipments increased 19.8 percent sequentially and 87.3 percent year-over-year.
* Gross profit margin for the core wafer to module business was 17.4 percent in the fourth quarter of 2010.
* Consolidated gross profit margin was 16.2 percent in the fourth quarter of 2010.
* Net income after taxes before non-controlling interest and equity in earnings of affiliates was $61.1 million in the fourth quarter of 2010.
* Suntech realized $24 million equity income from the earnings of the recently acquired wafer business in the fourth quarter of 2010.
* Equity in earnings of affiliates in the fourth quarter of 2010, inclusive of the $24 million equity income from earnings of the wafer business, increased to $322.9 million.
* Net income attributable to holders of ordinary shares was $383.4 million, or $2.02 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.

Full year 2010 highlights
* Total net revenues were $2,901.9 million in 2010, representing 71.4 percent growth year-over-year.
* Total PV shipments were 1,572MW, representing 124.5 percent growth year-over-year.
* Gross profit margin for the core wafer to module business was 18.6 percent.
* Consolidated gross profit margin was 17.4 percent.
* Net income attributable to holders of ordinary shares was $262.3 million, or $1.44 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
Suntech achieved 1.8 GW of PV cell and module capacity, and 500MW of silicon ingot and wafer capacity as of December 31, 2010.

"2010 was another landmark year for Suntech and the solar industry," said Dr. Zhengrong Shi, chairman and CEO. "We surpassed our shipment and revenue targets by setting new solar industry records for both quarterly and annual solar panel shipments.

"We maintained a strong position in established markets, while continuing to diversify into regions that will drive the next stage of growth in the solar industry. Within Europe we entered new partnerships with industry leaders such as Siemens and became the first company to ship more than 1,000MW in the region. We achieved a leading market share in the Americas and were recently selected to supply a 150MW (AC) project for Sempra Generation, just down the road from our new Arizona manufacturing facility. And we continue to gain ground in key growth markets such as Australia, China, India and Thailand.

"We successfully closed our acquisition of a wafer production facility, which will drive cost reduction and margin expansion in 2011. The integration is progressing well and the wafer acquisition is already generating returns for Suntech. In the fourth quarter, Suntech achieved $24 million equity income from the wafer business. With the rapid expansion of wafer capacity -- to 1.2GW by the end of 2011 -- and subsequent wafer cost reductions, we expect this contribution to grow through the course of the year.

"Our investment in the Global Solar Fund continues to generate value. GSF investee companies successfully completed 95MW of projects during the fourth quarter resulting in an increase in the fair value of GSF's investments. The eventual sale of these projects should be a source of cash for Suntech going forward.

"The opportunities ahead of us have never been greater. We are confident that our investments in our global sales channels, integrated manufacturing capabilities and technology initiatives will expand our position as the global market leader."