SAN FRANCISCO and WUXI, China, Aug 06, 2010 /PRNewswire via COMTEX/ --
Suntech Power
Holdings Co., Ltd. (NYSE: STP), the world's largest producer of crystalline
silicon solar panels, today announced preliminary financial results for the
second quarter ended June 30, 2010, including the impact of restructuring the
Company's Shanghai manufacturing facility and impairment charges related to
its investment in Shunda Holdings Co., Ltd., a manufacturer of polysilicon and
silicon wafers.
Suntech expects total net revenues for the second quarter of 2010 to be in
the range of $620 million to $630 million. Gross margin is expected to be in
the range of 17.5% to 18.5%.
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said, "Strong top line
results for the second quarter reflect extremely robust global demand for
solar. Customers in Europe, Asia, the Middle East and the Americas are
increasingly recognizing the benefits of adopting solar and are choosing
Suntech as a key partner. Our expected operating results for the second
quarter reflect our competitive advantages in these markets."
As a result of the depreciation of the Euro versus the USD during the
period, Suntech expects the impact from foreign exchange loss net of hedging
gains to be approximately $35 million for the second quarter of 2010, in line
with previously announced expectations.
Restructure of Shanghai Facility and Impairment Charges Relating to Shunda
Holdings
Due to the rapid cost reduction and improving competitiveness of
crystalline silicon solar panels, Suntech has been restructuring operations at
its Shanghai facility to focus on the manufacture of crystalline silicon solar
cells. As part of the restructuring, Suntech has ceased the manufacture of
amorphous silicon thin film solar panels. As a result, Suntech expects to
incur a thin film equipment non-cash impairment charge of approximately $50
million to $55 million in the second quarter of 2010.
Suntech also expects to incur non-cash charges of $106 million to $126
million in the second quarter of 2010 related to its investment and
prepayments to Shunda. Due to debt obligations, Shunda is currently undergoing
significant reorganization.
Commenting on the charges, Dr. Shi said, "While the thin film and Shunda
related charges will significantly impact our second quarter financial results,
they have no bearing on our core manufacturing operations which are performing
very well. Going forward, we will continue to focus on our primary mission of
supplying the most reliable and high performance solar panels in the
industry."
Suntech expects the total restructuring and impairment charges to have a
negative impact of approximately $0.87 to $1.01 per American Depository Share
(ADS) in the second quarter of 2010. Inclusive of the restructuring and
impairment charges, Suntech expects the net loss for the second quarter of
2010 to be in the range of $147 million to $179 million, which corresponds to
negative $0.82 to negative $1.00 per ADS.
The estimates presented in this press release are preliminary and
unaudited. 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 second
quarter of 2010. As such, these estimates and expectations set forth herein
may change materially.
Suntech will hold a conference call at 8a.m. U.S. Eastern Time on
Wednesday, August 18, 2010, before the U.S. market opens, to announce its
financial results for the second quarter ended June 30, 2010. Dial in details
for the conference call are posted on the Investor Relations section of
Suntech's website at http://ir.suntech-power.com .
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) produces industry-leading
solar products for residential, commercial, industrial, and utility
applications. With regional headquarters in China, Switzerland, and the United
States, and gigawatt-scale manufacturing worldwide, Suntech has delivered more
than 10,000,000 photovoltaic panels to over a thousand customers in more than
80 countries. Suntech's pioneering R&D creates customer-centric innovations
that are driving solar to grid parity against fossil fuels. Our mission is to
provide everyone with reliable access to nature's cleanest and most abundant
energy source.
For more information about our people and products 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 "plans to", "expects to," "anticipates,"
"future," "intends to," "plans," "believes," "considers" and similar
statements, and includes Suntech's estimates for second quarter 2010 revenues,
gross margin, foreign exchange loss and impairments to investments in thin
film equipment and Shunda Holdings Co., Ltd, and net income and EPS. 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:
Rory Macpherson
Investor Relations Director
Tel: +1-415-268-8975
Email: rory@suntech-power.com
Kristen McNally
Executive Vice President
The Piacente Group, Inc.
Tel: +1-212-481-2050
Email: suntech@tpg-ir.com
SOURCE Suntech Power Holdings Co., Ltd.
