International business expanded – basis for further growth established
- First quarter ended with revenue of EUR 71.1 million and operating result of EUR 0.3 million
- Export business up 14%; export revenue share reaches 72%
- Important measures taken to secure further profitable growth
- CENTROSOLAR benefits from new regulation in Italy
- Revenue and earnings forecast confirmed
Munich, May 10, 2011 – CENTROSOLAR ended the first quarter with revenue of EUR 71.1 million (previous year EUR 85.0 million). The company succeeded in increasing its export business by 14% compared with the prior-year quarter, to EUR 51.0 million. As a result, 72% of revenue was generated outside Germany. On the other hand the sales market in Germany performed distinctly more weakly than in the previous year as a result of sharp cutbacks in feed-in tariffs coupled with still-high solar cell prices. In the comparative period, the announced reduction in financial incentives mid-way through the year had produced a special boom that is atypical for the first half and is not expected this year.
The market was characterised by starkly contrasting effects in the first quarter: whereas demand in Germany was successfully held in check by the cutbacks to feed-in tariffs made in recent months, in Italy there were excessive feed-in tariffs until the start of March; these meant that cost improvements for wafers and solar cells were not passed on and that the raw material prices for solar silicon instead rose.
Despite this difficult market environment, a positive operating result (EBIT) of EUR 0.3 million was achieved (previous year EUR 8.2 million). Net earnings amounted to EUR 0.8 million (previous year EUR 4.4 million).
The company moreover performed important groundwork for further profitable growth during the past quarter:
- The company created a new sales channel through its plans to expand production capacities at Wismar and the 5-year production agreement for 100 MWp p.a. with TSMC.
- By expanding the sales organisation in the USA for both systems business and mounting systems and commissioning a production line for anti-reflective solar glass in China, CENTROSOLAR has taken important steps towards maintaining its international expansion.
- The financing of growth has been secured by the successful placement of a EUR 50 million bond.
- The continuous improvement processes already successfully implemented in the Solar Integrated Systems segment were extended to the Solar Key Components business area.
The company believes that these measures make it well-placed for further profitable growth. The format of the feed-in tariffs in the main sales markets has made it more difficult to issue sound forecasts for the business performance in the current financial year; changes to solar power incentives were made in Germany, Italy and France, the consequences of which cannot yet be fully predicted. Nevertheless, following price reductions for solar cells and in light of positive expectations regarding the future incentivisation of solar power for roof systems, the company expects to see a substantial surge in demand in the second half of the year, even more so as the company should particularly profit from the new regulation of feed-in tariffs in Italy: regulatory benefits apply for roof systems, building integrated systems, systems on refurbished roofs and systems with a high share of European content. Bearing in mind that CENTROSOLAR concentrates on the market segment of small and midsize roof systems, which attract preferential incentives not only in Italy, but also in Germany, France and many other countries, the company therefore confirms its revenue forecast of EUR 420 to 450 million with an EBIT margin of 4 to 6 %.
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 200 MWp, and is to be upgraded to 350 MWp in the course of the year. For further information, visit: www.centrosolar-group.com.
For further information, please contact:
MetaCom Corporate Communications GmbH
Georg Biekehör
Tel.: +49 (0)6181 9828030
E-mail: g.biekehoer(at)go-metacom.de