For the fourth quarter of 2008, Suntech expects total net revenues to be
in the range of
As a result of the rapid decline in silicon prices in the fourth quarter,
Suntech expects to make an inventory provision in the range of
"We are pleased to have exceeded our revised revenue and shipment guidance
for the fourth quarter and full year 2008," said Dr.
Convertible Senior Notes Repurchase and Investment Impairment
During the fourth quarter of 2008, Suntech conducted open market
repurchases of Suntech's 0.25% Convertible Senior Notes due 2012. Through
Due to the rapid decline in silicon prices and difficult financing
environment, Suntech expects to incur an expense related to the impairment of
Suntech's investments in Nitol Solar and Hoku Materials. The total value of
the investment impairment is expected to be in the range of approximately
As of
The Company also announced that it had reduced the workforce by
approximately 800 employees as a result of ongoing performance evaluation in
the fourth quarter of 2008. In addition, Suntech suspended the hiring of a
further 2,000 new staff in line with the Company's decision to maintain
production capacity at 1GW as a result of the difficult economic environment.
Suntech will consider further expansion and hiring when market conditions
improve. Suntech's headcount as of
The estimates presented in this press release are preliminary. Adjustments
to the estimates and projections set forth in this press release may be
identified as a result of, among other things, finalization of the company's
financial closing procedures and external audit process for the year ended
Suntech will hold a conference call to discuss fourth quarter and full
year 2008 financial results at
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of solar modules. Suntech designs, develops, manufactures, and markets premium-quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's patent-pending Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods.
Suntech also offers one of the broadest ranges of building-integrated
solar products under the MSK Solar Design Line(TM). Suntech designs and
delivers commercial and utility scale solar power systems through its wholly
owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering and
will own and operate projects greater than 10 megawatts in
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements, and includes fourth quarter and full year 2008 net revenues and consolidated gross margin; full year 2008 PV product shipment target; inventory write down expense; Convertible Senior Notes non-cash profit; investment impairment charge; and cash and cash equivalents balance. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For further information, please contact: In China: Rory Macpherson Investor Relations Director Tel: +86-21-6288-5574 Email: rory@suntech-power.com In the United States: Sanjay M. Hurry Vice President The Piacente Group, Inc. Tel: +1-212-481-2050 Email: suntech@tpg-ir.com
SOURCE Suntech Power Holdings Co., Ltd.