China’s Suntech Power Holdings Co (STP.N) posted record 2Q10 revenues of $625.1 million–an increase of almost 95% year-over-year.
That makes Suntech the largest solar manufacturer by revenue. However, it did not keep the company from posting a loss of $174.9 million in the quarter (compared to net income of $20.7 million in 1Q10).
Suntech’s Chairman and CEO Zhengrong Shi said the loss was mainly due to one time impairments resulting from facility restructuring.
"Despite successful sales expansion and strong execution during the second quarter, our financial results bear the significant impact of our Shanghai facility restructuring and Shunda Holdings investment impairments. These were necessary adjustments to make, and they have no impact on our core manufacturing operations. Now that they are behind us, we are in a better position to address the growth we are expecting in our core business," Shi said.
Suntech is restructuring operations at its
Shanghai facility to focus on the manufacture of crystalline silicon PV
cells. As part of the restructuring, Suntech ceased the trial
production of amorphous silicon thin film solar panels in 2Q.
Shi also said the company will accelerate the next phase of capacity expansion, targeting 1.8 gigawatts (GW) of cell and module capacity by the end of 2010.
As a result, the company is increasing its 2010 shipment target from 1.3 GW to 1.5 GW.
Suntech also noted that it expanded its North American dealer network to nearly 400 in 2Q10.
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