Suntech exceeds shipments, falls down on revenues17. February 2012 | Industry & Suppliers, Markets & Trends | By: Becky Stuart
In releasing its preliminary fourth quarter (Q4) and full year (FY) 2011 financial results, Suntech Power Holdings Co., Ltd says it exceeded Q4 shipments. Revenues and gross margin, however, continued to decline.
The Chinese photovoltaic module manufacturer believes it will see a 10 percent sequential decline in shipments in Q4 2011, instead of the anticipated 20 percent. For FY 2011, it expects to ship a total of just over 2.09 gigawatts (GW) of modules, which is slightly above its previous guidance.
In terms of revenues, Suntech says Q4 2011 reaped between US$610 million and $630 million – down from the $809.8 million seen in Q3 2011 and the $830.7 million in Q2. For the FY, the company expects to generate revenues of between $3.13 billion and $3.15 billion. It has already adjusted its revenue guidance downwards in November, from $3.2 billion to $3.4 billion.
Q4 2011 gross margin, on the other hand, is expected to be in between its guidance range of nine and 11 percent. This is still higher than the 4.1 percent achieved in Q2 2011, but down from Q3’s 13.3 percent.
In a statement released, Suntech added, "In the fourth quarter of 2011, due to continuing stringent working capital management, Suntech significantly reduced accounts receivable and inventory by a total of approximately $450 million, which was partially offset by an approximate $85 million decrease in accounts payable … Net debt declined by approximately $200 million in the fourth quarter of 2011. Cash and restricted cash increased from $567.7 million as of September 30, 2011 to over $700 million as of December 31, 2011."
Suntech will release its financial results for Q4 and FY 2011 on March 8.
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