Suntech Shine Again
Suntech Power Holdings Co. Ltd. (STP)
Suntech Reports Second Quarter 2008 Financial Results
Great results shouldn’t be a surprise to anyone. I’ll write more tomorrow, but from my first look it was a sensational quarter.
- Expectations were for $0.32 (.27-.27 range) STP did $0.41 up from $0.25 last year. (GAAP $0.38)
- Revenue grew 51.3% to $480.2 million comfortably ahead of the May forecast of $430 million to $440 million. Expectations were for $439M.
Quarter ended PV cell production capacity was 660MW and is on track to reach 1GW by the end of 2008.
As if that wasn’t good enough news they raised guidance yet again due to “robust demand coupled with strong execution”. From a range of $1.9 to $2.1B to a range of $2.05 – $2.15B. Increased full year 2008 PV product shipment target from 530MW to approximately 550MW.
Choice comments from the Chairman, Dr. Zhengrong Shi.
fully booked for the second half of 2008 and expect these excellent demand conditions to continue through 2009. As it stands, we have already signed over 200MW of fixed price, fixed volume sales contracts with strong pricing for 2009. We are also in the process of finalizing approximately 500MW of additional sales contracts, which we expect to complete by the end of the third quarter…
…great strides in silicon procurement during the second quarter. We made a strategic investment in Shunda, finalized investments in Nitol and Glory Silicon, and recently entered into long-term contracts with Wacker-SCHOTT, Crystalox, and ReneSola. We have built a diverse family of silicon suppliers that we believe will lead to greater supply stability and enhance our long term cost competitiveness through a steep declining cost curve. Due to these agreements, we have now secured 900MW of attractively priced silicon for 2009
Excellent…
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