Suntech’s Q1 Profits Grow YoY but Shrink from Q410 Highs
Suntech Power Holdings (NYSE:STP) made first quarter 2011 net income of $31.9 million or $0.17 per diluted ADS, compared to net income of $358.0 million in the fourth quarter of 2010 and $20.7 million in the first quarter of 2010, the company reported on May 25. Consolidated gross profit margin was 19.0% in the quarter, compared to 16.2% in the fourth quarter of 2010 and 19.5% in the first quarter of 2010.
The company posted total revenues of $877.0 million, or a sequential decrease of 7.2% and an annual increase of 49.1%. The company attributed the sequential revenue decline to a 3.1% decrease in PV shipments, resulting mainly from policy uncertainty in Italy, and a slight decline in the average selling price of PV products. PV shipments increased 62.9% on an annual basis.
The company booked a foreign exchange gain of $29.9 million in the quarter, compared to a foreign exchange losses of $2.8 million in the fourth quarter of 2010 and $24.5 million in the first quarter of 2010.
Suntech had a total of 2.2GW of PV cell and module capacity and 1GW of silicon ingot and wafer capacity as of the end of the quarter.
In the second quarter of 2011, Suntech expects low-single-digit growth of PV shipments and relatively flat gross margin compared with the first quarter of 2011. For the fiscal year ending December 31, 2011, Suntech reiterated its shipment guidance of 2.2GW of solar products, but revised downwards its full year revenue guidance to between $3.3 billion and $3.5 billion.
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