euro adhoc: aleo solar AG
Earnings Forecast
aleo solar AG to increase
production capacity from 100 to 180 MWp and build a new logistics centre
Revenue forecast for 2007 raised to at least EUR 185 million - minimum of EUR
240 million expected for 200
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
20.06.2007
aleo solar AG is significantly expanding its production capacities due to ongoing high demand for solar modules. To date, total capacity has consisted of 90 MWp from the company´s Prenzlau location and 10 MWp from its Spanish facility near Barcelona. With the planned 80 MWp expansion in Prenzlau, aleo solar AG will have a total of 180 MWp available. A new state-of-the-art logistics centre is also to be built. For 2007, aleo solar AG is expecting revenue of at least EUR 185 million, along with an ongoing solid EBIT margin. The proportion of international revenue is expected to amount to at least 25%. At least EUR 240 million in revenue is expected for 2008.
Third production line and new logistics centre for EUR 27.5 million planned
To implement the planned increase in production capacity, the current warehouse in Prenzlau will be emptied and four new state-of-the art production lines with 20MWp of capacity each will be set up in the building. At the same time, a new logistics centre with an automatic warehouse is planned in the immediate area of the present facility. Logistics is very important to aleo solar AG because it supplies specialist dealers and fitters directly. Construction of the logistics centre is due to begin in the autumn of 2007 and commissioning of the new production lines is planned for the early summer of 2008. The Prenzlau location will be at its new full capacity in the autumn of 2008 at the latest. Total investments planned for the expansion of capacity and the new logistics centre amount to EUR 27.5 million.
Significant improvement in supply of solar cells foreseeable
The supply of solar cells is clearly improving; existing producers are expanding their production and new solar cell producers, especially from Asia, are entering the market. The procurement market is easing. From the very beginning, aleo solar AG´s strategy has been to use the capital from its IPO to invest in long and medium term contracts for solar cells, among other things, in order to lay the foundation for future growth. Thus far, aleo solar AG has been able to secure a total of around 240 MWp of solar cells for the period from 2008 to 2010 because of these contracts. In addition, more contracts for solar cell supplies for the expanded facilities are currently being negotiated. The Management Board sees its strategic orientation confirmed by current developments and believes that now is an ideal time to take the next growth step.
Continuing market growth: nationally and internationally
The first quarter of 2007 already went extremely well for aleo solar AG: revenue rose by 44.8% to EUR 37.2 million. Overall, national and international business continues to show strong growth. Sales teams in Spain and Italy were expanded for this reason, and new teams for Greece and France will commence operations very shortly. The industry predicts that the volume of the European solar module market in 2008 to 2010 will be at least EUR 10 billion. The current expansion of production capacities and the new logistics centre will enable aleo solar AG to secure a share of this.
aleo solar AG´s strategy of focusing on module manufacturing pays off
aleo solar AG sees itself as a "pure player": it is and will remain a producer of solar modules and a systems supplier. This strategic positioning allows aleo solar AG to play to its strengths: it uses its production and process expertise and is able to expand its production capacity quickly to leverage economies of scale and learning curve effects. Overall, this creates a virtuous circle for the company: organic growth, recognized high quality, a strong brand and its own sales force ensure that aleo solar AG will be successful in the future as well.
end of announcement euro adhoc 20.06.2007 07:15:24
Further inquiry note:
Franz Nieper or Yvonne Meyer
Investor Relations, Legal & Compliance
Tel.: +49 441-21988-77
E-Mail: Invest@aleo-solar.de
Branche: Alternative energy
ISIN: DE000A0JM634
WKN: A0JM63
Index: CDAX, Technologie All Share, Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
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