SAN FRANCISCO and WUXI, China, Feb. 18 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world’s largest photovoltaic (PV) module manufacturer, today announced financial results for the fourth quarter and full year ended December 31, 2008.
Fourth Quarter 2008 Financial Highlights(1)
-- Total net revenues grew 4.2% year-over-year to $414.4 million.
-- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
Excluding the provision for inventory and purchase commitments,
adjusted non-GAAP consolidated gross margin in the fourth quarter
was 13.1%.
-- GAAP net loss was $65.9 million, or negative $0.42 per diluted
American Depository Share (ADS). On a non-GAAP basis, Suntech’s net
loss was $42.4 million, or negative $0.27 per diluted ADS. Each ADS
represents one ordinary share.
-- Net debt decreased by $273.7 million to $1,117.8 million as of
December 31, 2008.
Full Year 2008 Financial Highlights(1)
-- Total net revenues grew 42.7% year-over-year to $1,923.5 million.
-- Full year 2008 total shipments of solar products grew 36.0%
year-over-year to 497.5 MW.
-- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.
-- GAAP net income for the full year was $111.0 million or $0.66 per
ADS. On a non-GAAP basis, Suntech’s net income for the full year was
$149.7 million or $0.89 per diluted ADS.
-- Achieved 1GW solar cell and module production capacity.
"Customer recognition of Suntech’s high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech’s Chairman and CEO. "During 2008, we bolstered our
on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."
"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."
"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech’s reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.
RECENT BUSINESS HIGHLIGHTS
Silicon Procurement
-- Suntech and MEMC Electronic Materials amended their 10-year silicon
wafer supply agreement. As amended, the dollar value of silicon
wafer purchases from MEMC remains unchanged, but a volume increase
and a price reduction for 2009 have been effectuated.
-- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
independent polysilicon producer, for a total cash consideration of
approximately $8.1 million. Suntech previously entered into an
agreement to purchase up to $1.5 billion high purity polysilicon
from Asia Silicon over a seven-year period. Polysilicon cost
decreases to less than $40 per kilogram during the term of the
agreement.
Notable PV Projects
-- Suntech was chosen to design and construct a BIPV system totaling
3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
The project will be the largest BIPV installation in China.
-- Suntech supplied 5MW of Suntech solar panels for the largest solar
plant in the Middle East, a 10MW solar electricity system to power
Masdar City, the world’s first carbon neutral city being built in
Abu Dhabi, United Arab Emirates. The solar system is being built and
designed by leading Abu Dhabi based solar power system integrator,
Enviromena Power Systems.
Product Offering Expansion
-- Suntech entered into an exclusive agreement giving Suntech rights
related to the worldwide manufacturing, distribution and marketing
of Applied Solar’s building integrated solar roof tile product,
SolarBlend(TM), and roof membrane product, SolarEze(TM). The
agreements combine Suntech’s industry-leading products with Applied
Solar’s innovative BIPV applications to provide a more comprehensive
set of product offerings to the residential and commercial market.
U.S. Dealer Network
-- Suntech continued expanding its dealer network of residential
rooftop installers and integrators in the U.S. Currently, Suntech’s
network includes over 100 dealers, up from 30 at the end of the
third quarter of 2008.
Technology
-- Suntech has a fully operational 34MW Pluto PV cell line and is in
the process of adding another 68MW of Pluto capacity. Suntech
expects to receive industry certification for Pluto PV modules in
the second quarter of 2009 and targets shipments of more than 50MW
of Pluto modules in 2009.
-- The Pluto high efficiency technology consistently achieves
conversion efficiencies of close to 17% on multi-crystalline PV
cells and close to 19% on mono-crystalline PV cells. Suntech
anticipates that the higher conversion efficiencies will improve
power output by up to 12% above conventional screen-printed PV cells,
enable improved space utilization and reduce installation and other
balance of system costs.
Convertible Senior Note Repurchase
-- Through December 31, 2008, Suntech repurchased $93.8 million
aggregate principal amount of its 0.25% Convertible Senior Notes due
2012 for cash consideration of $61.0 million. As a result, Suntech
realized a net gain of approximately $31.1 million.
Capital and Credit Facilities
-- Suntech had approximately $2.4 billion of approved credit lines to
be used for fixed asset purchase, working capital or trade financing
as of December 31, 2008. Of these credit facilities approximately
$1.2 billion had been drawn down as of December 31, 2008. Suntech
expects that its capital will be sufficient to cover its capital
expenditures in 2009 while maintaining adequate working capital to
support its operations.
Fourth Quarter 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard PV Modules $382.6 92.3 % $11.4 3.0 %
Others $31.8 7.7 % ($7.8) (24.0%)
Total Net Revenues $414.4 100 % $3.6 0.9 %
Provision for
inventory and
purchase
commitment $50.7 12.2 %
Adjusted Non-GAAP
Gross Profit $54.3 13.1 %
Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.
Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.
Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non-GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.
Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.
Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.
Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.
In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer’s nonconvertible debt borrowing rate.
Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.
Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech’s investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.
Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.
On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.
On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.
In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech’s production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.
Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short-term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.
Restricted cash was $70.7 million as of December 31, 2008.
Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.
Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.
Full Year 2008 Results
Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin
(in $ % of Net (in $
millions) Revenues millions) (%)
Standard $1,785.8 92.8 % $343.8 19.3 %
PV
Modules
Others $137.7 7.2 % $5.7 4.1 %
Total Net $1,923.5 100 % $349.5 18.2 %
Revenues
Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.
On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.
On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over-year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.
In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech’s production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.
Business Outlook
Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.
Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.
Fourth Quarter and Full Year 2008 Conference Call Information
Suntech management will host a conference call today, Wednesday, February 18, 2009 at 8:00 a.m. Eastern Time (which corresponds to 9:00 p.m. Beijing/Hong Kong time and 1:00 p.m. Greenwich Mean Time on February 18, 2009) to discuss the Company’s results.
To access the conference call, please dial +1-617-786-2963 (for U.S. callers) or +852-3002-1672 (for international callers) and ask to be connected to the Suntech earnings conference call. A live and archived webcast of the conference call will be available on Suntech’s website at
http://www.suntech-power.com under Investor Center: Financial Events.
A telephonic replay of the conference call will be available until March 4, 2009 by dialing +1-617-801-6888 (passcode: 58672451).
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 the United States through Gemini Solar Development Company, a joint venture with MMA Renewable Ventures. With regional headquarters in China, Switzerland and San Francisco and sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visit http://www.suntech-power.com .
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 our ability to grow in the United States and in the utility scale segment, our ability to expand our market share in 2009, whether the project financing environment will improve in 2009, our ability to receive industry certification of Pluto and total shipment of Pluto modules 2009, our ability to repurchase or refinance the convertible senior notes, estimated Q1 2009 revenue and gross margin, and estimated full year 2009 shipments and capital expenditures. 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.
About Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with GAAP, Suntech uses the following non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude items related to share-based compensation, restructuring expenses amortization expenses incurred from the purchase price allocation effect related to the MSK Corporation, KSL-Kuttler Automation Systems GmbH and Suntech Energy Solutions Inc. acquisitions, extraordinary impairment on investments and gain from convertible notes buy-back. Suntech believes that non-GAAP information is useful for analysts and investors to evaluate Suntech’s future on-going performance because they enable a more meaningful comparison of Suntech’s projected cash earnings and performance with its historical results from prior periods. This information is not intended to represent funds available for Suntech’s discretionary use and is not intended to represent or to be used as a substitute for gross profit/margin, operating expenses, operating income or net income as measured under GAAP. Many analysts covering Suntech use the non-GAAP measures as well. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures" set forth at the end of this release and which shall be read together with the accompanying financial statements prepared under GAAP.
(1) Selected highlights of the Company’s fourth quarter 2008 results
are set forth in the text of the release and should be read
together with the detailed financial statements at the end of
this release.
(2) All non-GAAP measures exclude share-based compensation expenses,
restructuring expenses and amortization expenses incurred from
purchase price allocation related to the acquisitions of MSK
Corporation and KSL-Kuttler Automation Systems GmbH and Suntech
Energy Solutions Inc. acquisitions, extraordinary impairment on
investments and gain from convertible notes buy-back. For further
details on non-GAAP measures, please refer to the reconciliation
table and a detailed discussion of management’s use of non-GAAP
information set forth in this press release.
Note: The quarterly consolidated income statements are unaudited. The
condensed consolidated balance sheets are derived from Suntech’s
unaudited consolidated financial statements.
Note: The quarterly and full year consolidated income statements are
unaudited. The condensed consolidated balance sheets are derived
from Suntech’s unaudited consolidated financial statements.
SUNTECH POWER HOLDINGS CO., LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(In $’000)
As of As of
September 30, December 31,
2008 2008
ASSETS
Current assets:
Cash and cash equivalents 394,550 507,789
Restricted cash 124,142 70,710
Inventories 247,885 231,874
Accounts receivable 232,775 213,118
Value-added tax recoverable 201,800 75,667
Advances to suppliers 77,268 56,873
Short-term investments 145,594 --
Other current assets 155,436 165,887
Total current assets 1,579,450 1,321,918
Property, plant and equipment, net 574,899 684,497
Intangible assets, net 160,828 176,677
Goodwill 78,821 87,595
Investments in affiliates 132,921 221,106
Long-term prepayments 250,761 248,807
Long-term loan to suppliers 83,821 83,972
Amount due from related parties 287,142 277,991
Other non-current assets 191,995 146,214
TOTAL ASSETS 3,340,638 3,248,777
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings, including
current portion of long-term bank
borrowings 704,120 638,426
Accounts payable 84,682 117,499
Other current liabilities 161,595 220,810
Total current liabilities 950,397 976,735
Long-term bank borrowings 6,893 5,894
Convertible notes 1,075,000 981,236
Accrued warranty costs 36,498 41,430
Other long-term liabilities 129,113 137,822
Total liabilities 2,197,901 2,143,117
Minority interest 8,090 8,478
Total shareholders’ equity 1,134,647 1,097,182
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY 3,340,638 3,248,777
SUNTECH POWER HOLDINGS CO., LTD
CONSOLIDATED INCOME STATEMENT (*)
(In $’000, except share, per share, and per ADS data)
2007 2008
Net revenues 1,348,262 1,923,509
Total cost of revenues 1,074,205 1,580,622
Gross profit 274,057 342,887
Operating expenses
Selling expenses 30,562 59,328
General and administrative expenses 44,414 85,737
Research and development expenses 15,055 15,314
Total operation expenses 90,031 160,379
Income from operations 184,026 182,508
Interest expenses (23,991) (57,573)
Interest income 31,207 32,572
Foreign exchange loss (8,982) (14,404)
Other income (expense) 226 (30,012)
Income before income taxes 182,486 113,091
Tax provision (13,234) (3,785)
Net income after taxes before
minority interest and equity in
earnings of affiliates 169,252 109,306
Minority interest 2,722 1,442
Equity in (loss) earnings of affiliates (699) 287
Net income 171,275 111,035
Net income per share and per ADS:
- Basic 1.13 0.72
- Diluted 1.02 0.66
Shares used in computation:
- Basic 151,699,307 154,700,584
- Diluted 169,257,283 170,491,770
SUNTECH POWER HOLDINGS CO., LTD.
CONSOLIDATED INCOME STATEMENT
(In $’000, except share, per share, and per ADS data)
Three months Three months Three months
ended ended ended
December 31 September 30 December 31
2007 2008 2008
Total net revenues 397,538 594,403 414,413
Total cost of revenues 314,823 466,065 412,068
Gross profit 82,715 128,338 2,345
Selling expenses 9,586 14,774 14,531
General and administrative expenses 13,096 21,808 27,112
Research and development expenses 3,132 4,682 4,529
Total operating expenses 25,814 41,264 46,172
Income/(loss) from operations 56,901 87,074 (43,827)
Interest expenses (7,058) (16,661) (18,038)
Interest income 8,122 8,805 10,073
Foreign exchange loss (3,733) (16,612) (3,188)
Other income (expense) 1,657 (3,171) (19,712)
Income/(loss) before income taxes 55,889 59,435 (74,692)
Tax provision (5,186) (3,651) 8,906
Net income/(loss) after taxes
before minority interest and
equity in earnings of affiliates 50,703 55,784 (65,786)
Minority interest 936 141 (401)
Equity in (loss) earnings of
affiliates (1,020) 0 288
Net income/(loss) 50,619 55,925 (65,899)
Net income per share and per ADS:
- Basic 0.33 0.36 (0.42)
- Diluted 0.29 0.33 (0.42)
Shares and ADSs used in
computation:
- Basic 152,187,168 155,835,915 155,880,532
- Diluted 169,784,511 185,490,716 155,880,532
Each ADS represents one ordinary share
Reconciliations of non-GAAP results of operations measures to the nearest
comparable GAAP measures (*)
(in $ millions, except margin data, per share and per ADS data, unaudited)
Three months ended December 31, 2007
Share- Effect of
based Purchase Restructuring
GAAP Compensation Price Expenses Non-GAAP
Results Allocation Results
Gross profit 82.7 3.1 -- -- 85.8
Gross margin 20.8% 21.6%
Income from operations 56.9 6.6 0.8 0.5 64.8
Income from operations
margin 14.3% 16.3%
Net income 50.6 6.6 0.5 0.5 58.2
Net income margin 12.7% 14.7%
Net income per share and
per ADS
-Basic 0.33 0.38
-Diluted 0.29 0.34
Three months ended September 30, 2008
Share- Effect of
based Purchase Restructuring
GAAP Compensation Price Expenses Non-GAAP
Results Allocation Results
Gross profit 128.3 1.4 -- -- 129.7
Gross margin 21.6% 21.8%
Income from operations 87.1 3.9 1.6 -- 92.6
Income from operations
margin 14.6% 15.6%
Net income 55.9 3.9 0.5 -- 60.3
Net income margin 9.4% 10.1%
Net income per share and
per ADS
-Basic 0.36 0.39
-Diluted 0.33 0.35
Three months ended December 31, 2008
Effect of
Share- Purchase
GAAP based Price
Results Compensation Allocation
Gross profit 2.3 1.6 -0.3
Gross margin 0.6%
Loss from operations -43.8 3.8 1.8
Loss from operations margin -10.6%
Net loss -65.9 3.8 2.0
Net loss margin -15.9%
Net loss per share and per ADS
-Basic -0.42
-Diluted -0.42
Convertible
notes Non-
Restructuring Investment repurchase GAAP
Expenses Impairment gain Results
Gross profit -- -- -- 3.6
Gross margin 0.9%
Loss from operations -- -- -- -38.2
Loss from operations margin -9.2%
Net loss -- 48.8 -31.1 -42.4
Net loss margin -10.2%
Net loss per share and per ADS
-Basic -0.27
-Diluted -0.27
Twelve months ended December 31, 2007
Share- Effect of
based Purchase Restructuring
GAAP Compensation Price Expenses Non-GAAP
Results Allocation Results
Gross profit 274.1 10.7 -- -- 284.8
Gross margin 20.3% 21.1%
Income from operations 184.0 26.9 2.4 1.8 215.1
Income from operations
margin 13.6% 16.0%
Net income 171.3 26.9 1.0 1.8 201.0
Net income margin 12.7% 14.9%
Net income per share and
per ADS
-Basic 1.13 1.33
-Diluted 1.02 1.19
Twelve months ended December 31, 2008
Effect of
Share- Purchase
GAAP based Price
Results Compensation Allocation
Gross profit 342.9 5.9 0.8
Gross margin 17.8%
Income from operations 182.5 16.2 7.0
Income from operations margin 9.5%
Net income 111.0 16.2 4.8
Net income margin 5.8%
Net income per share and per ADS
-Basic 0.72
-Diluted 0.66
Convertible
notes Non-
Restructuring Investment repurchase GAAP
Expenses Impairment gain Results
Gross profit -- -- -- 349.6
Gross margin 18.2%
Income from operations -- -- -- 205.7
Income from operations margin 10.7%
Net income -- 48.8 -31.1 149.7
Net income margin 7.8%
Net income per share and per ADS
-Basic 0.97
-Diluted 0.89
(*) The adjustment is for share-based compensation, restructuring expenses
and the amortization expenses incurred from the purchase price
allocation effect related to the MSK Corporation, KSL-Kuttler
Automation Systems GmbH and Suntech Energy Solutions Inc. acquisitions,
extraordinary impairment on investments and gain from convertible
notes buy-back.
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
