Suntech reports Q2 2011 financial results

WUXI, CHINA: Suntech Power Holdings Co. Ltd, the world's largest producer of solar panels, announced financial results for its second fiscal quarter ended June 30, 2011.

Highlights
* Total net revenues were $830.7 million in the second quarter of 2011, representing a sequential decrease of 5.3 percent, and an increase of 32.9 percent year-over-year.
* Total PV shipments increased 2 percent sequentially, and increased 48 percent year-over-year.
* GAAP gross profit margin was 4.1 percent in the second quarter of 2011. Excluding a $91.9 million charge related to the MEMC settlement, non-GAAP gross margin was 15.1 percent in the second quarter of 2011.
* Net loss attributable to holders of ordinary shares was $259.5 million, or $1.44 per diluted American Depository Share (ADS). Excluding the one-time charges related to the MEMC settlement and discontinued operations at CSG Solar in Germany, non-GAAP net loss attributable to holders of ordinary shares was $33.8 million, or $0.19 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.
* Suntech achieved 2.4GW of PV cell and module capacity, and 1.2GW of silicon ingot and wafer capacity as of the end of the second quarter of 2011. PV cell capacity includes 600MW of capacity that is operated by a Suntech joint venture.

"In a competitive market environment, our core operations performed well as customers continued to demonstrate their preference for Suntech's superior quality and highly bankable solar products," said Dr. Shi, Suntech's chairman and CEO.

"With 48 percent shipment growth year-over-year, we achieved our shipment guidance and continued to improve our position in the Americas and emerging solar markets. Our pipeline to supply bankable utility-scale solar projects continued to build during the quarter, most notably with our 190MW partnership with Solarhybrid in Europe, and a recently-inked 200MW agreement for multiple projects in North America. We are also gaining traction in China's utility solar market, which has been stimulated by the introduction of a national feed-in-tariff."

"Operationally, we implemented a number of initiatives to improve our supply flexibility and lower our cost structure. Specifically, we discontinued a long term agreement with MEMC and expanded internal wafer capacity to 1.2GW. We also continued to drive solar innovation with the launch of two new high performance product lines that we are shipping in large-scale today."

"Looking forward, we anticipate the highly competitive market environment to continue for the next few quarters. Nonetheless, we are confident that with our ongoing investment in expanding our channels, and the strength of our global solar brand, track record and highly bankable offering, we are well positioned to maintain our industry leadership," added Dr. Shi.