SAN FRANCISCO and WUXI, China, May 10, 2010 /PRNewswire via COMTEX/ --Suntech Power
Holdings Co., Ltd. (NYSE: STP), one of the world's largest crystalline silicon
photovoltaic (PV) module manufacturers, today announced preliminary financial
results for the first quarter of 2010.
Suntech expects total net revenues for the first quarter of 2010 to be in
the range of $580 million to $590 million. Gross margin is expected to be in
the range of 19% to 20%, compared to previous guidance of 18% to 20%.
As a result of the depreciation of the Euro versus the USD, Suntech
expects to incur a foreign exchange loss of approximately $24 million to $25
million for the first quarter of 2010. This is expected to be partially
off-set by a net gain of approximately $2 million to $3 million from hedging
Dr. Zhengrong Shi, Suntech's Chairman and CEO said, "We are pleased to see
extremely strong demand in the first quarter of 2010. With robust demand in
incumbent solar markets and rapid growth in a host of emerging markets, we
expect this environment to continue deep into 2010."
Amy Zhang, Suntech's Chief Financial Officer said, "In order to help
mitigate the pressure of a weaker Euro we have increased the hedging coverage
of our net Euro exposure to 50% in the second quarter and plan to increase to
above 60% in the second half of the year."
The estimates presented in this press release are preliminary. Adjustments
to the estimates and projections set forth in this press release may be
identified as a result of, among other things, finalization of the Company's
financial closing procedures for the first quarter of 2010. As such, these
estimates and our expectations set forth herein may change materially.
Suntech will announce its financial results for the first quarter ended
March 31, 2010, before the U.S. market opens at 8a.m. U.S. Eastern Time on
Thursday, June 3, 2010. Dial in details for the conference call will be posted
on the Investor Relations section of Suntech's website prior to the call.
Suntech Power Holdings Co., Ltd. (NYSE: STP) is one of the world's leading
solar energy companies 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 offers an extensive range of
customer-centric innovations, including Suntech's patent-pending Pluto
technology for crystalline silicon solar cells, which improves power output by
up to 12% compared to conventional production methods, the Reliathon(TM), the
industry's first fully integrated utility-scale solar platform, and its broad
range of building-integrated solar products.
Suntech designs and delivers commercial and utility scale solar power
systems in China and the United States. With regional headquarters in China,
Switzerland and San Francisco and sales offices worldwide, Suntech is
passionate about improving the environment we live in and dedicated to
developing advanced solar solutions that enable sustainable development. For
more information, please visit http://www.suntech-power.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements,
and includes the Suntech's estimates for first quarter 2010 revenues, gross
margin, foreign exchange loss and other income; and margins, foreign exchange
losses and target hedging percentages in future quarters. Such statements
involve certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. Further
information regarding these and other risks is included in Suntech's filings
with the U.S. Securities and Exchange Commission, including its annual report
on Form 20-F. Suntech does not undertake any obligation to update any forward-
looking statement as a result of new information, future events or otherwise,
except as required under applicable law.
For further information, please contact:
Investor Relations Director
Suntech Power Holdings Co., Ltd.
In the United States:
Executive Vice President
The Piacente Group, Inc. (Investor Relations Counsel, Suntech)
SOURCE Suntech Power Holdings Co., Ltd.