Suntech Power Holdings Co., Ltd. (NYSE: STP), a leading manufacturer of photovoltaic (PV) cells and modules, reported a doubling of 1Q08 earnings, as the result of growing demand, particularly in Germany and Spain.
Shares of the company increase 10.1% to $50.95 in premarket trading, according to the Associated Press.
First quarter 2008 total net revenues grew 76.1% year-over-year to $434.5 million.
Consolidated gross margin increased to 22.2% for 1Q08, compared to 19.0% for 1Q07.
Net income for 1Q08 was $55.8 million or $0.33 per
diluted American Depository Share (ADS), compared with $26.1 million or $0.16 per share a year ago.
Suntech’s PV cell production capacity was 540MW at the end of 1Q08. The company said it is on track to reach 1GW PV cell production capacity by the end of 2008.
"We executed extremely well during the first quarter, despite the impact of the snowstorm, to deliver stronger than expected growth in net revenues and solid financial results," said Dr. Zhengrong Shi, Suntech’s Chairman and CEO. "A vigorous demand environment in the major solar markets in Germany and Spain as well as in the emerging markets including South Korea and Italy drove strong pricing during the quarter. We expect demand to remain robust through 2008 and are virtually sold out for the full year."
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech designs, develops, manufactures, and markets a variety of solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK Solar Design Line(TM). Suntech has sales offices worldwide.
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