U.S. News

Suntech sees strong demand for solar products


Solar energy company Suntech Power Holdings said Monday that it expects to record revenue of $580 million to $590 million, which would exceed most Wall Street expectations, because of strong demand.

Shares in the Chinese company jumped 10 percent.

Analysts surveyed by Thomson Reuters expected revenue of only $542 million for the quarter ended March 31.

Suntech said it expects gross margins of 19 percent to 20 percent during the period, compared with its previous forecast of 18 percent to 20 percent.

The company, however, said it expects to incur a foreign exchange loss of $24 million to $25 million in the quarter because the dollar continues to strengthen. That will be partially offset by a net gain of $2 million to $3 million from Suntech's hedging positions.

Suntech's shares rose $1.11 to $11.60 in trading Monday afternoon.

The company will release its financial results for the quarter on June 3.