Suntech posts quarterly loss on charges

NEW YORK (Reuters) - China's Suntech Power Holdings Co posted a second-quarter loss as it took charges for an investment and to shut down its thin-film solar business, but it raised its shipment forecast for 2010.

Like others in the industry, Suntech saw strong demand in the quarter on robust European demand as buyers rushed purchases ahead of cuts to renewable energy subsidies in key markets such as Germany and Italy.

The company also said it signed supply agreements for large projects in Thailand, India and Israel, and remained on track to begin production in the United States in fourth quarter.

The company, the largest Chinese maker of photovoltaic equipment, reported a net loss of $174.9 million, or 97 cents per American depositary share, compared with a year-earlier profit of $10 million, or 6 cents per ADS.

Excluding charges to shut down the thin-film amorphous silicon operations in Shanghai and for a stake in Shunda Holdings Co, earnings were 3 cents a share, in line with the analysts' average forecast, according to Thomson Reuters I/B/E/S.

Revenue rose 95 percent to $625.1 million.

Like many other solar manufacturers, Suntech suffered during the quarter from the weakness in the euro against the U.S. dollar, which costs it about $61.4 million.

Suntech hiked its 2010 shipment target to 1.5 gigawatts from 1.3 GW, which is more than double total shipments for 2009, as it expands its production capacity to 1.8 GW.

However, the company said it expected gross margins, which were 18.2 percent in the second quarter, to be in the mid-to-high-teens percentage range in the third quarter.

Shares of Suntech were down 2.4 percent at $8.77 in trading before the market opened. At Tuesday's close, the stock had tumbled 46 percent so far this year.

(Reporting by Matt Daily; Editing by Lisa Von Ahn)