Nov 9, 2011 - Chinese solar products maker Suntech Power Holdings Co Ltd (NYSE:STP) said Wednesday it expected third-quarter sales of over USD 800 million (EUR 588m) and a gross margin of 13%.
The gross margin projection comes at the high end of an earlier guidance of 11% to 13%.
Less than two weeks before it publishes its report for the quarter, the company guided for more than 15% quarter-on-quarter growth in shipments.
At the same time, Suntech announced it had undertaken certain measures to cut its operating costs by over 20% in 2012, to bolster its production capacity and to grow its working capital by USD 200 million by end-2011. "With excess supply and a volatile macroeconomic environment, we recognize that the coming quarters will be challenging; however, with these actions we will become a leaner, more competitive organization," chairman and CEO Zhengrong Shi said.
Suntech will release its financial report for the third quarter of 2011 on November 22.