Chinese Suntech lifts profit in Q3 2010

(ADPnews) - Nov 18, 2010 - Chinese photovoltaic (PV) cell and module maker Suntech Power Holdings Co Ltd (NYSE:STP) posted on Wednesday a third-quarter net profit of USD 33.1 million (EUR 24.6m), up from USD 29.8 million a year ago, and said it expects shipments for the full year to go up by 113%.

Operating profit grew to USD 62.6 million from USD 44.8 million in an annual comparison.

The gross margin stood at 16.4%, a decline from 18.2% in the previous quarter, as average selling prices declined slightly, while costs of silicon wafers went up.

Third-quarter revenue rose by 57.2% on the year to USD 743.7 million. Sales in the Americas for the period exceeded sales for the whole 2009. Shipments jumped by 107.1% in annual terms and 25.3% on the quarter.

At the end of the period, Suntech's total production capacity was 1.6 GW and the company expects to reach cell and module capacity of 1.8 GW by the end of the year.

For the fourth quarter, the company projects a 10% quarter-on-quarter rise in shipment figures. The gross margin is seen at 17%.

Full-year shipments are to reach 1.5 GW, according to Suntech. Capital expenditure for 2010 will be USD 350 million.

(USD 1.0 = EUR 0.740)

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