Suntech Power Holdings, a China-based producer of solar panels, has announced financial results for its third fiscal quarter ended September 30, 2011.
Total net revenues for the third quarter of 2011 were US$809.8 million, compared to US$830.7 million in the second quarter of 2011 and US$743.7 million in the third quarter of 2010. The sequential decrease of revenues was primarily due to a decline in the average selling price (ASP) of PV products, which was partially offset by an increase of shipments.
For the third quarter of 2011, gross profit was US$107.8 million and gross margin was 13.3 % compared to US$33.7 million and 4.1%, respectively, in the second quarter of 2011, and US$133.1 million and 17.9%, respectively, in the third quarter of 2010.
The gross profit in the second quarter of 2011 was impacted by a US$91.9 million write-off of the unamortized cost of warrants previously issued to MEMC in conjunction with a supply agreement, which was terminated in the second quarter of 2011.
Net loss was US$116.4 million for the third quarter of 2011, compared to a net loss of US$259.5 million for the second quarter of 2011 and a net gain of $33.1 million for the third quarter of 2010.
Inventory was US$696.3 million as of September 30, 2011, compared with US$571.4 million as of June 30, 2011. The increase in inventory was primarily due to the growth of shipments.
In the third quarter of 2011, capital expenditure (capex) totaled US$80.8 million, compared to US$119.9 million in the second quarter of 2011 and US$137.0 million in the third quarter of 2010. Capex in the third quarter of 2011 were primarily related to the expansion of wafer manufacturing facilities.
In the fourth quarter of 2011, Suntech expects PV shipments to decrease by approximately 20% compared with the third quarter of 2011. Suntech expects gross margin will be in the range of 9-11% in the fourth quarter of 2011.
For the fiscal year ending December 31, 2011, Suntech expects to ship at least 2GW of solar products and generate revenues of US$3.0-3.1 billion, subject to changes in foreign exchange rates. This compares to previous shipment guidance of 2.2GW and revenue guidance US$3.2-3.4 billion. Excluding the US$91.9 million impact of the MEMC warrants in the second quarter of 2011, non-GAAP gross margin for the full year 2011 is expected to be range of 11-13%.
Full year 2011 capital expenditures are expected to be approximately $400 million, compared to previous guidance of $340 million to $360 million. Suntech will maintain its wafer capacity at 1.6GW and cell and module production capacity at 2.4GW.
Article translated by Jackie Chang
