Suntech Power 1Q Profit Rises 35 %

Suntech Power continues to rise its profits being one of the few solar power companies already making money from this industry:

Suntech Power Holdings Co. Ltd., which makes photovoltaic cells and modules used to generate electric power, said Tuesday its first-quarter profit jumped 35 percent, as production gains by the Chinese company helped offset tighter margins.

Quarterly earnings increased to $26.1 million, or 16 cents per share, from $19.3 million, or 12 cents per share, during the same period last year. Excluding costs from moving certain production from Japan to China, Suntech Power said it earned 22 cents per share in the latest quarter.

Analysts polled by Thomson Financial forecast a profit of 21 cents per share. Thomson estimates usually exclude special items.

Revenue nearly tripled to $246.7 million from $89.9 million in the same period a year ago. Analysts expected revenue of $228.1 million.

Suntech Power said production of photovoltaic cells during the quarter rose to 360 megawatts from 270 megawatts, although the company also noted that its margins shrunk to 19.9 percent from 30.1 percent. Suntech Power blamed the margin erosion on delivery problems with some wafer suppliers, but added that those deliveries are now back on track.

American Depositary Shares of the company added 37 cents to $35.63 in morning trading.

-Associated Press - Forbes

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