On February 17th, 2012 Suntech Power Holdings Company Ltd. (Wuxi, China) released selected preliminary financial results for the fourth quarter of 2011, estimating a 23% decline in revenues to between USD 610 and 630 million and a gross margin between 9% and 11%.

Suntech also estimates that it exceeded its shipment guidance for the quarter, with shipments only 10% lower than third quarter 2011 levels. With these results, the company expects shipments of roughly 2.09 GW and revenues between USD 3.13 and 3.15 billion for the full year 2011.

"Our sales and operations teams both performed well in the fourth quarter, enabling us to achieve key goals and improvements across our business," stated Suntech Chairman and CEO Dr. Zhengrong Shi. "We exceeded shipment guidance and improved our cash position through ongoing management of accounts receivable and inventory."

"We also completed the impairment assessment for the third quarter of 2011. The charges that we incurred were all non-cash and will not impact our operations moving forward. We will continue to implement the initiatives necessary to maintain our position as the leading supplier of solar panels."

Suntech reduced accounts receivable, inventory by USD 450 million

Suntech notes that during the quarter it reduced accounts receivable and inventory by roughly USD 450 million, exceeding a goal of USD 200 million in reductions in these categories. The company also reduced its debt by USD 200 million, and increased its cash and restricted cash from USD 568 million to USD 700 million.

Suntech will publish full fourth quarter 2011 financial results on March 8th, 2012 at 8AM Eastern Time.

2012-02-20| Courtesy: Suntech | solarserver.com © Heindl Server GmbH

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