Suntech Power Holdings Co., Ltd. (NYSE: STP), a leading manufacturers of photovoltaic (PV) cells and modules, reported second quarter earnings that beat analysts’ expectations.
Net income for 2Q08 was $65.2 million or $0.38 per
diluted American Depository Share (ADS), compared to $41.3 million or $0.25 per share a year ago.
Analysts, on average, expected earnings of $0.32 per share, according to Reuters Estimates.
Net revenues grew 51.3% year-over-year to $480.2 million, and consolidated gross margin increased to 24.1% for the quarter, compared to 20.3% for 2Q07.
Suntech’s PV cell production capacity was 660 megawatts (MW) at the end of 2Q08. The Company said it is on track to reach 1GW PV cell production capacity by the end of 2008.
Suntech said due to robust demand it has raised full year 2008 revenue guidance from a range of $1.9 billion to $2.1
billion to a range of $2.05 billion to $2.15 billion.
Suntech also increased full year 2008 PV product shipment target from 530MW to approximately 550MW.
Zhengrong Shi, Suntech’s Chairman and CEO, said, "We are fully booked for the second half of 2008 and expect these excellent demand conditions to continue through 2009. As it stands, we have already signed over 200MW of fixed price, fixed volume sales contracts with strong pricing for 2009. We are also in the process of finalizing approximately 500MW of additional sales contracts, which we expect to complete by the end of the third quarter."
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 and is a market share leader in key global solar markets.
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