Suntech Announces Preliminary Financial Results for the Fourth Quarter and
Full Year 2012
Provides Updates on Restructuring Initiatives
Announces Delayed Filing of Annual Report on Form 20-F
SAN FRANCISCO and WUXI, China, May 1, 2013
SAN FRANCISCO and WUXI, China, May 1, 2013 /PRNewswire/ --Suntech Power
Holdings Co., Ltd. (NYSE: STP) (the "Company" or "Suntech"), one of the
world's largest producers of solar panels, today announced preliminary
financial results for the fourth quarter and full year ended December 31,
Preliminary results indicate that Suntech's shipments of photovoltaic (PV)
products for the fourth quarter of 2012 declined by approximately 4% from the
third quarter of 2012. Revenues in the fourth quarter of 2012 were
approximately $358 million, a sequential decline of 8%. Approximately 91% of
revenues were generated from the sale of PV modules, and 9% of revenues were
generated from the sale of PV systems, cells, silicon wafers and production
equipment. Gross margin in the fourth quarter of 2012 was approximately 0.4%.
In the full year 2012, preliminary results indicate Suntech shipped
approximately 1.8GW of PV products, in line with prior guidance. Revenues for
the full year 2012 were approximately $1,625 million, a year-over-year decline
of 48%. Approximately 92% of revenues were generated from the sale of PV
modules, and 8% of revenues were generated from the sale of PV systems, cells,
silicon wafers and production equipment. Gross margin for the full year 2012
was approximately negative 1.4%.
"We are undertaking a number of restructuring initiatives to address Suntech's
balance sheet and improve the Company's cost structure and operational
efficiency. We are making progress and are evaluating solutions that will take
into account the rights and interests of all of our stakeholders. In the
meantime, we continue to manufacture and deliver high-quality solar products
to our global customers," said David King, Suntech's CEO.
Update on Restructuring Initiatives
Wuxi Suntech Power Co., Ltd. ("Wuxi Suntech")
Wuxi Suntech, the Company's Chinese subsidiary, which is in the process of
restructuring, continues to work with the court-appointed administrator and
its stakeholders to improve its financial position and outlook. The
administrator has scheduled a Wuxi Suntech creditors meeting in Wuxi on May
22, 2013, earlier than previously anticipated, to present and discuss
Suntech Power International Ltd. ("SPI")
SPI, the Company's principal operating subsidiary in Europe, which on April 9,
2013 was granted a provisional moratorium for up to two months on creditor
claims, is working closely with the court-appointed administrator and has
proposed a new business plan to establish sustainable operations. The
Company's intention is that the new business plan will enable SPI to enter a
definitive moratorium that would provide a platform to enter discussions with
3% Convertible Notes (the "Notes")
The Company continues its discussions with major holders of the Notes with a
view to achieving a consensual restructuring. Suntech previously received a
notice of default and acceleration relating to Suntech's non-payment of the
principal amount of US$541 million that was due to holders of the Notes on
March 15, 2013. Suntech has entered into a forbearance agreement with holders
of over 60% of the Notes under which the signing bondholders agree not to
exercise their rights under the Notes and the related indenture until May 15,
2013, subject to certain market-standard early termination events.
Restatement Update and Delayed Filing of 2012 Annual Report on Form 20-F
On December 7, 2012, the Company announced that it intended to file restated
consolidated financial statements for 2010 and 2011 upon the completion of the
assessment of the guarantee obligation provided to lenders to a GSF project
company in 2010 and the completion of GSF's financial audit. The Company
currently anticipates additional time is required to complete the restatement
as the reassessment of the related GSF audited financials and other matters
have not yet been completed.
As a result of (1) the pending restatement of the Company's consolidated
financial statements for 2010 and 2011, and (2) the Company requiring
additional time to assess the outcomes of restructuring initiatives at Wuxi
Suntech, SPI and of the convertible notes (as discussed above) and the related
impact on asset values and other financial metrics, the Company announced that
it will delay the filing of its annual report on Form 20-F for the fiscal year
ended December 31, 2012 (the "2012 Annual Report") beyond the filing deadline
of April 30, 2013. The Company is working diligently to complete these
assessments and file restated financials for 2010 and 2011, as well as the
2012 Annual Report on Form 20-F, as soon as practicable.
The estimates presented in this press release are preliminary, unaudited and
subject to further adjustments.
Suntech Power Holdings Co., Ltd. (NYSE: STP) produces solar products for
residential, commercial, industrial, and utility applications. With regional
headquarters in China, Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80 countries.
Suntech's pioneering R&D creates customer-centric innovations that are
designed to drive solar to grid parity against fossil fuels. Our mission is to
provide everyone with reliable access to nature's cleanest and most abundant
For more information about our people and products visit
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 "plans to", "expects to," "anticipates,"
"future," "intends to," "optimistic," "plans," "believes," "considers" and
similar statements and includes Suntech's preliminary results for the fourth
quarter and full year 2012, and timing to file restated consolidated financial
statements for 2010 and 2011 and its 2012 annual report on Form 20-F. 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.
SOURCE Suntech Power Holdings Co., Ltd.
Contact: Ryan Ulrich, Media Relations, email@example.com, Ph: +86
510 8531 8654
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