本文摘要：There were no obvious surprises in Suntech’s first quarter financial results. Total net revenues were US$877....

Dr. Zhengrong Shi noted in the conference call to discuss first quarter results that its Pluto technology-based modules were now ramping to meaningful capacity. The executive said that it expects to ship 200MW of Pluto modules this year with shipments already being made into Europe and expects shipments to the US to commence in the second-half of 2011.

Andrew Beebe, Suntech’s Chief Commercial Officer noted that demand in Europe had been slower than expected so far this year, especially in Germany. Beebe said that Suntech didn’t expect the European market would pick-up until the second-half of the year.

However, since the FiT review in Italy demand had picked-up but emphasis for growth was being concentrated in the North American market and emerging markets in Asia. Beebe noted that it would be expanding its dealer network in the US this year having expanded to a 3-shift system at its module plant in the country.

However, module ASPs are expected to remain under pressure this year and could fall a further ‘high single-digit’ amount. ASPs have generally fallen about 10% so far this year, according to market research firms.

Shi responded to analyst question on production utilization rates, noting that the utilization rate in Q1 was around 85% and expects that to increase in Q2 to about 90%.

A spike in production costs were attributed to the rising price of silver paste and exchange rate fluctuations.

Shi also noted that polysilicon costs in the quarter were US$60/kg and further decline was expected going forward, though did not provide a price cost range for the decline. Suntech has many long-term contracts for polysilicon. Wafer prices have also dropped even faster, according to Shi. These cost reductions are expected to support margins despite ASP pressure.
Japan market was about 4% of revenue down from expectations. New policies should have significant impact on installations in 2012 onwards.

Later in the call, Shi responded to an analysts question on what the polysilicon prices could decline to by the end of the year. Shi said that Suntech’s blended poly cost would be in the range of US$45/kg.

Module inventory levels had been a problem primarily in Europe but since Italy agreed a new FiT inventory was moving out and in Germany customers were already increasing orders.

Shi later said that 20MW of Pluto modules had been produced in Q1 and that the ramp was being helped by the slow demand overall for modules in the first quarter.