www.suntech-power.com
Suntech Power (NYSE: STP) is the world's leading solar energy company as measured by production output of crystalline silicon solar modules. Suntech designs, develops, manufactures, and markets premium quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors.
Suntech Power's third quarter profit rises as revenues and shipments ascend to new highs
Solar panel producer Suntech Power (NYSE: STP) swung to a third quarter profit from the previous three-month period as shipments and revenues hit new quarterly highs.
For the third quarter, attributable net income was $33.1 million, or $0.18 per diluted American Depository Share (ADS), compared to a net loss of $174.9 million, or negative $0.97 per ADS, in the second quarter of 2010. Each ADS represents one ordinary share.
The company, which operates in China, Switzerland and the US, said non-cash impairment charges and provisions related to credit risks had a negative impact of $1.00 per ADS in the second quarter.
Suntech has increasingly looked to diversify its sales globally, and the effects are now being seen, having recently undertaken a 5MW project in Thiva in Greece, one of the largest grid connected solar projects in the country, and a 44MW project in Thailand.
During the most recent period, total net revenues grew 19.0% sequentially and 57.2% year-over-year to $743.7 million, as the company said it sold more product in the Americas in the third quarter than it did in the full year of 2009. Suntech even opened a module manufacuturing facility in Arizona with expected 50MW capacity to help the company service the increasing demand in the region.
Indeed, total photovoltaic panel shipments increased 25.3% sequentially and 107.1% year-over-year, and the company expects this to grow by 10% more in the fourth quarter.
Suntech also said that it reached production capacity of 1.6GW during the third quarter, and that the company is on track to achieving its target of 1.8GW cell and module capacity by year-end.
Separately, the company announced today it is in the process of acquiring 100% of the 375MW of ingot and wafer slicing capacity in China for a total cash consideration of $127 million. The wafer manufacturing capacity is being spun off from a subsidiary of Glory Silicon Technology Investments, in which Suntech holds an equity investment.
"As we expand our internal wafer manufacturing capacity, we are confident we will have an improving earnings profile as we benefit from lower wafer cost," said chairman and CEO Dr. Zhengrong Shi.
"Upstream integration is in line with Suntech's strategy to continue to reduce the cost of solar energy and stimulate greater global adoption of clean, renewable energy."
Suntech has delivered more than 12 million photovoltaic panels to over one thousand customers in more than 80 countries. The company's cash and equivalents totaled $946.2 million at quarter-end.
