EANS-Adhoc: SOLON SE
SOLON SE reports a further increase in sales in the third
quarter with a robust pickup in the power plant business
ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
9-month report
12.11.2010
SOLON SE reports a further increase in sales in the third quarter with a robust pickup in the power plant business
- Revenues rise 85% to EUR404.6 million - Revenue distribution shifted in favor of the power plant business - More than 50% of sales generated outside of Germany - EBIT loss of EUR5.3 million weighed by special factor from the project business - Net loss after minority interests at EUR17.4 million
Berlin, November 12, 2010 - Berlin-based SOLON SE (ISIN DE0007471195), today published its interim report for the period ended September 30, 2010. The sustained high demand in Germany lasting into the third quarter and the noticeable pickup in other European markets and the U.S. enabled SOLON to increase the Group's revenue to above EUR400 million in the first nine months of the year. Already by late September, the Company had significantly surpassed its total revenue for all of 2009. In the third quarter, SOLON's business with solar modules again benefited from pull-forward effects associated with the enacted reduction of the feed-in tariffs in Germany. At the same time, there was a noticeable pickup of activities in the power plant business, especially in Italy. On the one hand, this led to a shift in revenue distribution in favor of the system technology business, which accounted for 29% of revenues in the nine month period. On the other hand, the share of revenue generated outside of Germany climbed to more than 50% and production output reached 194 MWp.
The most important performance indicators of the first nine months of 2010 are broken down as follows: Group revenue rose by 85% to EUR404.6 million from EUR218.4 million a year earlier. EBITDA improved year on year to EUR8.3 million (prior-year period: EBITDA loss of EUR72.2 million). The EBIT loss was reduced to EUR5.3 million (prior-year: EBIT loss of EUR87.0 million) and was primarily due to a one-off warranty expense from a pre-existing project in Italy in the amount of EUR4.5 million incurred in the third quarter. The Company considers the warranty claim unfounded and is taking legal action against it. Except for this special factor, SOLON would have closed the third quarter with a positive operating result. SOLON recorded a net loss after minority interests of EUR17.4 million in the first nine months of 2010 (prior-year period: net loss of EUR146.7 million). Earnings per share thus improved to a net loss per share of EUR1.20 in the period under review (prior-year period: net loss of EUR11.71 million).
Inventories increased to EUR130.0 million as of September 30, 2010 (December 31, 2009: EUR90.6 million). The main cause for this was the sharp increase in lead production output for the power plant projects currently under construction and scheduled for completion by year-end. Due to the increase in inventories and of trade receivables as well as a negative operating result, the cash flow from operating activities in the first nine months of 2010 amounted to EUR-17.5 million (prior-year period: EUR30.1 million). In the third quarter, SOLON generated a slightly positive operating cash flow in the amount of EUR0.7 million. Working capital was EUR174.1 million as of September 30, 2010. The ratio of working capital to revenue declined to 32% in the last twelve months. Net debt as of the reporting date was nearly unchanged at EUR368.5 million.
Based on the positive business performance thus far in the year and sustained robust activity in the project business, SOLON management has confirmed its revenue and earnings forecast for the year as a whole: The goal is to achieve Group revenue significantly above EUR500 million and a balanced operating result.
The complete interim report of SOLON SE for the quarter ended September 30, 2010 is available for download from the company's website (www.solon.com).
SOLON SE Therese Raatz Investor Relations Phone: +49 / 30 / 818 79 - 9305 Fax: +49 / 30 / 818 79 - 9300 E-Mail: investor@solon.com
end of announcement euro adhoc
Further inquiry note:
Therese Raatz
Head of Corporate Communications
Tel.: +49 30 818 79-9305
E-Mail: therese.raatz@solon.com
Branche: Energy
ISIN: DE0007471195
WKN: 747119
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