Suntech 3Q Profit Up on Rising Demand
Suntech Power (NYSE: STP) released 3Q earnings and is up 10% in Pre-market trading. The earnings numbers are in the article below:Suntech 3rd-Quarter Profit Climbs 43.8 Percent As Production Ramps to Meet Strong Demand
NEW YORK (Associated Press) - Suntech Power Holdings Co. said Thursday its third-quarter profit rose sharply as the solar-products maker increased production to meet "robust demand."
Net income rose 43.8 percent to $41.3 million, or 25 cents per share, from $28.7 million, or 19 cents per share, a year earlier. Revenue rose 94.7 percent to $317.4 million from $163 million.
Results missed Wall Street estimates. Analysts polled by Thomson Financial expected earnings of 28 cents per share on revenue of $355 million, on average.
"Our recent long term silicon contracts with Asia Silicon, Nitol Solar, ReneSola and a major Korean conglomerate mark a major turning point for Suntech's silicon supply environment as they will both enhance our margins and expand our volume," Chief Executive Zhengrong Shi said in a statement.
During the third quarter, Suntech produced solar cells and modules with over 100 megawatts of annual generating capacity. A one-megawatt power plant running continuously at full capacity can power 778 households each year, according to the Department of Energy. Solar technologies have lower capacity factors since their availability to generate power is constrained by availability of the sun.
Full article
posted by IntoBlogs at
9:09 AM
1 comment(s):
FSLR has a tellurium problem. BIG tellurium problem. Its product is based in cadmium telluride. While cadmium is extremely toxic and may poses an environmental problem, its much bigger problem is the fact that tellurium is one of the rarest elements on earth, rarer even than platinum. According to Arizona State Geologist, the global production is estimated to be only 215 tons per year. Some estimate put it even lower at 168 tons per year.
Read this interesting article, Is there a tellurium rush in the making.
Global tellurium price raised from below $4 a pound to well over $100 a pound in just a few years, implying severe shortage, even without significant CdTe demand yet, as FSLR only start to ramp up production this year. Emerging demands include DVD and computer flash memory, among other things.
In comparison, FSLR consumes about 135 tons of tellurium per GW of solar panels. I do not know how they are going to find the tellurium source when their new factories start up in Malaysia. Even if they can get the tellurium, it's likely their own demand will drive tellurium price up to such high level that they are no longer profitable.
FSLR is a company whose profit margin and growth potential is tightly squeezed and capped by its own tellurium demand. There is no future for this company. It really does not deserve this kind of ridiculous valuation.
Read this article, you might think there could be a tellurium rush by investors. If that occurs FSLR could be knocked out of supply and out of business:
I personally decided that I want to hoard tellurium, too, after reading that article. Read more on my blog.
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JJ2000426, at
12:49 AM
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