Suntech reports Q3 2011 financial results

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

Highlights
* Total net revenues were $809.8 million in the third quarter of 2011, representing a sequential decrease of 2.5 percent, and an increase of 8.9 percent year-over-year.

* Total PV shipments increased approximately 16 percent sequentially, and 36 percent year-over-year.

* Gross profit margin was 13.3 percent in the third quarter of 2011, at the high end of the previously guided range of 11 percent to 13 percent.

* Net loss attributable to holders of ordinary shares was $116.4 million, or $0.64 per diluted American Depository Share (ADS). Each ADS represents one ordinary share.

* Suntech achieved 1.6GW of silicon ingot and wafer capacity and 2.4GW of cell and module capacity as of the end of the third quarter of 2011. PV cell capacity includes 600MW of capacity that is operated by a Suntech joint venture.

"Suntech's diverse global sales channels combined with customer preference for high performance, bankable products enabled Suntech to meet our third quarter shipment and margin guidance, despite the challenging market conditions," said Dr. Shi, Suntech's chairman and CEO.

"While European markets remained the cornerstone of demand in the third quarter, we were pleased to see continuing growth opportunities in the Americas and the Asia Pacific. In particular, demand for solar in China accelerated rapidly with the introduction of the first national feed-in-tariff.

"Looking forward, we expect excess capacity to fuel strong competition and consolidation in the next two to three quarters. This will be challenging for all solar companies. Through this period, we will accelerate initiatives to strengthen our financial and operational discipline and streamline our organization. These include reducing operating expenses by 20 percent in 2012, holding capacity expansion in 2012, and improving working capital by $200 million by the end of 2011.

"At the same time, we also recognize that the near-term challenges create opportunities, and we are excited by the prospects for the solar industry. Lower cost will drive significant growth in demand, especially for utility-scale solar projects. With Suntech's brand, bankability and well-established channels to market, we are confident that we will be well positioned to supply this next wave of solar growth."