Suntech's preliminary financial report for the third quarter: PV shipments increased by 15% month-on-month

Surprisingly, Suntech Power, the world's largest solar module manufacturer, announced its preliminary results for the third quarter, and hinted that in response to the more serious oversupply situation in the industry, the company will reduce its employment and restructure the production business.

Suntech said that shipments in the third quarter are expected to increase by 15% on the basis of the previous quarter, and that the revenue will be expected to exceed US$800 million. The gross profit margin is expected to be around 13%. Suntech also said that it will suffer "a far higher than expected loss of non-cash foreign exchange transactions."

"In the face of the oversupply in the industry and the turbulent macroeconomic environment, we realize that in the next few quarters, the form will become more severe. However, with these actions, we will become more streamlined and more Competitive institutions.” Dr. Shi Zhengrong, Chairman and CEO of Suntech, said, “By actively implementing these initiatives, we are confident that Suntech will be able to maintain its financial and operational stability and gain a stronger market position. ."

Suntech further announced that the company's goal is to reduce operating expenses by at least 20 percentage points in 2012. As the company expects to spend nearly $10 million in severance payments in the second half of 2011, the 2012 capital expenditure plan will be shelved.

In the last quarter, Suntech's chairman and chief executive stated that the company’s goal of expanding its battery and component capacity to 2.4 GW by the end of 2011 is on schedule.