Suntech Power Holdings Co. (STP, K3ND.SG) swung to a fourth-quarter loss as the solar-panel maker reported higher operating expenses, softer revenue and higher foreign exchange losses.

Suntech, which has now reported three straight quarters of losses, has taken steps to keep up with a rapidly changing market, such as its recent unveiling of plans for a broader reorganization that included a shuffling of executives. SunPower has said it remains focused on expanding in the U.S. and Europe , as well as South Africa and the Middle East .

Chief Executive Zhengrong Shi said Thursday the company expects excess capacity and further policy changes in the U.S. and Europe to keep up intense competition in the solar industry.

"In this context," he continued, "our top priorities are to continue to drive down our production cost, invest in channel development and bring to market the most competitive product offerings."

Pointing to the current period, Suntech said it expects shipments to decline by 30% from the fourth quarter, due to softer seasonal demand. For the full year, it expects shipments of 2.1 gigawatts to 2.5 gigawatts, compared with 2011 shipments of 2.1 gigawatts.

Suntech reported a loss of $136.9 million, or 76 cents an American depositary share, compared with a year-earlier profit of $358 million, or $1.83 an ADS. The year-earlier period was aided by equity in earnings of affiliates, which totaled $323.8 million a year ago, compared with a loss of $58.1 million in the latest period. Excluding certain writedowns and other items, the latest quarterly loss was 30 cents an ADS. Analysts polled by Thomson Reuters expected a loss of 32 cents a share.

Revenue declined 33% to $629 million due to fewer shipments and weaker selling prices. The company last month said it expected revenue of $610 million to $630 million, topping analyst estimates at the time.

Operating expense rose 54%.

Shipments increased 3.2% from a year earlier while declining 9.7% from the third quarter. The company had anticipated shipments to drop 10% from the third quarter.

Gross margin narrowed to 9.9% from 17.4% a year earlier, meeting the company's forecast of 9% to 11%.

Suntech's ADS closed Wednesday at $2.93 and were inactive premarket. Through the latest close, the stock has risen 33% since the start of the year, aided by its upbeat fourth-quarter revenue view and increased full-year guidance last month.

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