CENTROSOLAR continues to expand its international market position in the first half of 2011
- First half ended with revenue of EUR 150.5 million; sales volumes expanded in core activities despite weak market environment; export share expanded to 63 %
- Core business operations in Europe remained profitable despite drop in market prices; costs of expansion in North America and expansion of product range led to EBIT of EUR -4.9 million.
- Positive outlook for second half: full year revenues expected at EUR 330 to 380 million with a positive operating result
Munich, August 12, 2011 – CENTROSOLAR ended the first half with revenue of EUR 150.5 million (previous year EUR 209.2 million). The second quarter in particular (revenue EUR 79.3 million, as against EUR 124.2 million in previous year) saw a substantial decline in market prices which temporarily weighed on revenue and earnings. The fall in prices was triggered by the Italian government effectively suspending financial incentives for solar systems for 2-3 months in March. In Germany, too, demand has remained weak in the year to date. Although CENTROSOLAR has succeeded in increasing its market shares and even slightly expanding its sales volumes for solar modules and complete systems in its core activities, it has nevertheless seen its revenue as a whole fall. The share of revenues outside of Germany was expanded from 49% to 63%.
As well as having an impact on revenue, the falling prices also diminished the gross margin. This, combined with the costs of expansion in North America and costs of expanding the mounting systems product range, led to a negative first-half operating result of EUR -4.9 million compared with EUR 21.1 million in the first half of 2010. The operating result (EBIT) for the second quarter came to EUR 5.2 million compared with EUR 12.9 million in the previous year. Earnings per share were correspondingly EUR -0.32 for the first half (prior-year period EUR 0.64).
The core business operations in Europe remained profitable despite the weak market. However, it was no longer able to make good the start-up losses from expansion in North America and the costs for expanding the mounting systems product range.
At the same time, the company is able to look to the second half of 2011 with optimism: Although the overall market situation has not yet improved noticeably, the price cuts now offer the prospect of attractive rates of return for operators of photovoltaic (PV) systems; from the late summer on, this should translate into corresponding demand especially for roof-mounted solar systems – CENTROSOLAR’s core product. Furthermore, CENTROSOLAR has been registering rising interest in roof solar systems in Italy since June, now that they are granted preferential financial incentives there. Revenue has also been on the rise in the UK, Belgium and the USA.
Because the purchase prices of solar cells have also fallen, CENTROSOLAR stands to benefit from its flexible purchasing strategy. With market prices currently stabilising, a marked improvement on the earnings side is also expected in the second half.
For the year as a whole, CENTROSOLAR expects revenue of EUR 330 to 380 million with a positive operating result
About CENTROSOLAR Group AG:
The listed company CENTROSOLAR Group AG, Munich, (stock exchange code WKN 514850) is one of the leading suppliers of photovoltaic (PV) systems for roofs and key components, with over 1,000 employees in Europe and North America and annual revenue in excess of EUR 400 million (2010). Its product range comprises solar integrated systems, modules, inverters, mounting systems and solar glass. It generates around half its revenue internationally. There are CENTROSOLAR branches in Spain, Italy, France, Greece, Switzerland, the Netherlands, the UK, Canada and the USA.
CENTROSOLAR manufactures solar glass at plants in Fürth (Germany) and Huzhou (China) as well as photovoltaic modules at a production plant in Wismar (Germany). Over the past two years, the production lines for the finishing of glass have been substantially extended in response to rising demand and now have an annual production capacity of eight million square metres. Module manufacturing was also stepped up quite substantially in response to soaring demand. The module plant certified to DIN ISO 9001:2008 in Wismar is one of the largest and most efficient such plants in Europe, with an annual capacity currently of 250 MWp, and is to be upgraded to 350 MWp in the course of the year. For further information, visit: www.centrosolar-group.com.
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