Suntech Climbs After Exceeding Solar Panel Shipment Forecast

Suntech Climbs After Exceeding Solar Panel Shipment Forecast

Suntech Power Holdings Co., the
world’s biggest maker of silicon-based solar panels, rose the
most in a week after boosting its forecast for 2011 earnings on
stronger-than-expected shipments.
Suntech rose 14 percent to $3.85 at 10:07 a.m. in New York,
the biggest intraday gain since Feb. 9. Earlier it climbed 17
percent. The shares have climbed 74 percent this year.
The company, based in Jiangsu, China, said it expects
shipments for last year to total 2.09 gigawatts, above the
previous forecast of 2 gigawatts. Revenue will range from $610
million to $630 million for the fourth quarter, according to a
statement today.
“Our sales and operations teams both performed well in the
fourth quarter,” Suntech Chairman Zhengrong Shi said in the
statement. “We exceeded shipment guidance and improved our cash
position through ongoing management of accounts receivable and
inventory.”
The company took a charge of $571 million in the third
quarter to write down goodwill after a plunge in its market
value triggered by declining prices and margins for solar
products across the industry. Suntech will issue its full-year
results on March 8 at 8 a.m. New York time.