Suntech reported earnings this morning with a fourth quarter $65.9 million net loss versus $50.6 million profit a year ago. Revenues were $414 million for the fourth quarter, up 4.4% from $398 million a year ago.
The company’s loss comes from a dip in sales and decline in PV prices. On an adjusted basis it is a 27 cents a share loss which is in line with expectations of analysts polled by Reuters.
For the full year of 2008, the company net income was $111 million on $1.9 billion of net revenues.
In the release, Suntech CEO, Dr. Zhengrong Shi, said “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.”
The company expects revenue to drop in the first quarter of 2009 to the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro.
For the full year 2009, Suntech expects to ship 800MW of solar. In the release the company says it will “hold PV cell production capacity at 1GW in 2009 until credit market visibility improves.” It will spend $100 million in capital expenditures mostly aimed at retrofitting current plants to produce their new line of Pluto PV cells. The money will also be used to complete a thin film facility.