Suntech lowers 2012 shipment guidance: Q3 revenue down 18%

Facebook
Twitter
LinkedIn
Reddit
Email

Slower demand from key European markets saw Suntech Power Holdings report preliminary Q3 2012 revenue of approximately US$387 million, down 18% from the prior quarter.

The key knock-on effect of weaker demand was the guidance that shipments would decline q-on-q in the low single digit percentage in Q4 2012 and a further downward revision of full-year shipment guidance to between 1.7GW – 1.8GW, compared to previous guidance of 1.8GW – 2.0GW.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Based on the guidance, Suntech would relinquish in number 1 ranking to Yingli Green, which recently guided shipments for the full-year to be between 2.1GW – 2.2GW.

Overall, Suntech reported PV product shipments were down approximately 10%, quarter on quarter. Suntech reported that 88% of revenue was generated from the sale of PV modules, 12% from the sale of PV systems, cells, silicon wafers and production equipment.

The company reported gross margin of approximately 5%. Operating expenses were approximately YS$98 million, which was impacted by US$6 million of legal fees related to GSF and other legal matters. Previously announced restructuring and headcount reduction cost US$8 million in Q3, while US$6 million was attributed to the impairment of intangible assets.

Due to on-going accounting investigations of the claimed fraud from its PV project subsidiary, GSF the company is only providing limited financial information.

David King, Suntech's CEO said: “In the third quarter, subsidy adjustments led to slower demand in European markets, however, quarterly shipments grew to Suntech customers in China, Japan and Thailand. With the soft demand environment expected to persist into early 2013, we have taken decisive steps to right-size production capacity and streamline operations, which will reduce production cost and operating expenses over time. We are also working with our banking partners and bondholders to ensure we have a capital structure that will enable Suntech to be successful in the current challenging industry environment. We are confident that these initiatives will strengthen our business and enable us to improve profitability as the market recovers.”
 

Read Next

June 27, 2025
The UK government has decided it will not sign a Contract for Difference (CfD) with Xlinks for the 11.5GW Morroco-UK interconnector project.
June 27, 2025
Renewables investment platform Nexwell Power has signed a round of power purchase agreements (PPAs) with “one of the largest” US tech companies for solar PV capacity to be built in Spain.
June 27, 2025
Statkraft has signed PPAs with Better Energy to purchase energy from two solar power plants in Poland with a total capacity of 64GWh.
June 27, 2025
Solar developer Lightsource bp has signed a power purchase agreement (PPA) with a subsidiary of Taiwanese energy firm HD Renewable Energy (HDRE).
June 27, 2025
PV Tech spoke to Monika Paplaczyk about recent changes in the UK energy mix and opportunities for investors in the solar sector.
Premium
June 27, 2025
PV Talk: '2024 was a transformational year in terms of energy policy,' says Monika Paplaczyk ahead of this year's Clean Power 2030 Summits.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico