Suntech announces prelim financial results for Q4 and FY 2012

USA & CHINA: Suntech Power Holdings Co. Ltd announced the preliminary financial results for the fourth quarter and full year ended December 31, 2012.

Preliminary results indicate that Suntech's shipments of photovoltaic (PV) products for the fourth quarter of 2012 declined by approximately 4 percent from the third quarter of 2012. Revenues in the fourth quarter of 2012 were approximately $358 million, a sequential decline of 8 percent.

Approximately 91 percent of revenues were generated from the sale of PV modules, and 9 percent of revenues were generated from the sale of PV systems, cells, silicon wafers and production equipment. Gross margin in the fourth quarter of 2012 was approximately 0.4 percent.

In the full year 2012, preliminary results indicate Suntech shipped approximately 1.8GW of PV products, in line with prior guidance. Revenues for the full year 2012 were approximately $1,625 million, a year-over-year decline of 48 percent.

Approximately 92 percent of revenues were generated from the sale of PV modules, and 8 percent of revenues were generated from the sale of PV systems, cells, silicon wafers and production equipment. Gross margin for the full year 2012 was approximately negative 1.4 percent.

"We are undertaking a number of restructuring initiatives to address Suntech's balance sheet and improve the Company's cost structure and operational efficiency. We are making progress and are evaluating solutions that will take into account the rights and interests of all of our stakeholders. In the meantime, we continue to manufacture and deliver high-quality solar products to our global customers," said David King, Suntech's CEO.