--Incurs Additional Impairment Charge for Investment in Nitol SolarSAN FRANCISCO and WUXI, China, May 8, 2009 /PRNewswire-Asia via COMTEX/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), the world's largest manufacturer of
crystalline silicon photovoltaic (PV) modules, today announced the filing of
its 2008 annual report on Form 20-F with the Securities and Exchange
Commission, including its 2008 audited financial statements. During the course
of its 2008 year-end financial audit process, the Company determined that the
investment impairment charge previously reported in its press release
discussing its preliminary fourth quarter 2008 results should be increased
from $48.8 million to $73.8 million. The additional $25.0 million impairment
charge relates to Suntech's investment in Nitol Solar, a polysilicon
manufacturer in which the Company owned a 14.0% equity interest as of December
The additional impairment charge was primarily due to updated information
obtained from Nitol Solar's final December 31, 2008 financial statements
including new material information related to fixed asset impairments and
losses on financial instruments. As this additional information related to
conditions that existed at December 31, 2008, the assumptions used to
determine the fair value of Suntech's investment in Nitol Solar were
re-assessed and it was determined that an additional provision of $25 million
was necessary. The after tax impact to Suntech's 2008 net income as a result
of this additional investment impairment was $22.8 million.
In March 2009, Nitol Solar entered into a series of debt restructuring
agreements through which it secured approximately $400 million in debt
financing to complete the construction of its 3,800 metric ton polysilicon
production facility. Nitol Solar currently has 300 metric tons of production
capacity and intends to initiate production in an additional 3,500 metric ton
facility in early 2010. As a result of the dilution caused by the recent debt
restructuring, Suntech owned an 11.5% equity interest in Nitol Solar as of
May 8, 2009.
The audited consolidated balance sheet as of December 31, 2008 and
statement of operations data for the fourth quarter and full year 2008 can be
found in an SEC filing on Form 6-K filed today. Additional information
relating to our 2008 financial statements, including the notes thereto, can be
found in our annual report on Form 20-F. Copies of the related 6-K and 20-F
can be found in the "Investor Center" section of the Suntech website under
"SEC Filings." Should you wish to be sent a hard copy of the complete audited
financial statements please contact firstname.lastname@example.org.
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar
energy company as measured by production output of crystalline silicon
photovoltaic (PV) modules. Suntech designs, develops, manufactures, and
markets premium-quality, high-output, cost-effective and environmentally
friendly solar products for electric power applications in the residential,
commercial, industrial, and public utility sectors. Suntech's patent-pending
Pluto technology for crystalline silicon solar cells improves power output by
up to 12% compared to conventional production methods.
Suntech also offers one of the broadest ranges of building-integrated
solar products under the MSK Solar Design Line(TM). Suntech designs and
delivers commercial and utility scale solar power systems through its wholly
owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering.
With regional headquarters in China, Switzerland and San Francisco and sales
offices worldwide, Suntech is passionate about improving the environment we
live in and dedicated to developing advanced solar solutions that enable
sustainable development. For more information, please 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 "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements.
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.
For more information, please contact:
Investor Relations Director
Suntech Power Holdings Co., Ltd.
In the United States:
Sanjay M. Hurry
The Piacente Group, Inc. (Investor Relations Counsel, Suntech)
SOURCE Suntech Power Holdings Co., Ltd.