EANS-News: Sunways AG First quarter 2012 affected by strong decline in selling
prices
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Financial Figures/Balance Sheet/quarterly report/3-month report
Subtitle: - Deterioration of prices continues to have significant negative
impact on profitability
- Solar module sales volumes affected by production bottlenecks
Konstanz (euro adhoc) - 16 August 2012 - In the first three months of the
current fiscal year, operations of Sunway AG (SWW:GR, SWWG.DE, ISIN
DE0007332207) experienced a weak development. Reductions of solar subsidies
announced in Germany and other European markets were not reflected in Sunways'
sales revenues in the form of corresponding pull-forward effects. This was due
to the limited availability of solar modules resulting from production
bottlenecks. In addition, pressures on selling prices, in particular for solar
modules but also for inverters, continued and even increased during the first
three months of 2012. In the first three months of 2012, the Sunways Group's
sales revenues declined by more than half against the prior year quarter to EUR
10.4 million (Q1/2011: EUR 22.2 million). The operating result (EBIT) was
negative at EUR 6.8 million (Q1/2011: EUR -3.5 million).
Weak international business
In the period under review, Sunways generated international sales revenues in
the amount of EUR 3.3 million (Q1/2011: EUR 12.8 million). Business developments
in Italy and Spain, where sales in each case declined by more than 90 % against
the prior year quarter, were particularly disappointing. As of 1 January 2012,
the Spanish government suspended solar subsidies. However, due to the
intensified cooperation with the LDK Solar Group, sales in Asia increased to EUR
0.4 million (Q1/2011: -) in the first quarter of 2012. In all, Sunways AG's
international sales decreased by 74.2 % or EUR 9.5 million against the first
quarter of 2011 (Q1/2011: EUR 12.8 million).
Module supply affected by production bottlenecks
Due to the deterioration of market prices, sales in the solar cell segment fell
below the figure reported in the comparable prior year quarter. Sales revenues
declined by 46.7 % from EUR 7.5 million in the prior year quarter to EUR 4.0
million in the first quarter of 2012. Sales volumes also decreased markedly by
28 % to 4.9 megawatts peak in the first quarter after 6.8 megawatts peak in the
first quarter of 2011.
Due to materials bottlenecks in the module production at LDK Solar in China, the
supply of Sunways solar modules in the first quarter was inadequate. This could
partially be offset by the use of LDK merchandise. Sales volumes of solar
modules only amounted to 6.4 megawatts peak in the first quarter of 2012 and
thus fell by 45.3 % against the relevant figure for the prior year quarter of
11.7 megawatts peak. The deterioration of selling prices achievable in the
market (which declined by more than 40 % within a period of 12 months) also
contributed to this development. Accordingly, sales in the first quarter of 2012
dropped by 68.9 % to EUR 5.1 million (Q1/2011: EUR 16.4 million).
Compared to the first quarter of the fiscal year 2011, the Sunways Group's
sales in the solar inverter segment increased by 32.0 % to EUR 4.1 million
(Q1/2011: EUR 3.1 million). The sales volume of 24.3 megawatts peak in the first
three months of the current year almost doubled from the 12.6 megawatts peak
sold in the first quarter of 2011. On the other hand, the prices for solar
inverters also decreased markedly (decline by about 30 % within a period of 12
months).
LKD Solar's acquisition of a stake in the company as an anchor investor was
successfully completed
In the first quarter of 2012, Sunways AG's capital increase from authorized
capital resolved on 31 December 2011 was successfully completed. Only LKD Solar
German Holding GmbH, an indirect subsidiary of LDK Solar Co., Ltd., was
permitted to subscribe for shares. Upon completion of the capital increase, the
interest of LDK Solar Germany Holding GmbH amounted to about 33 %.
Simultaneously with the resolution on the capital increase, LDK Solar Germany
Holding GmbH announced a voluntary public takeover offer with respect to all
outstanding shares of Sunways AG. From the point of view of the Management Board
and Supervisory Board of Sunways AG, the acquisition of a majority stake in the
Company by the LDK Solar Group involves competitive advantages and promising
international prospects for Sunways. Therefore, they recommended that
shareholders should accept the offer. Upon completion of the takeover offer on
12 April 2012, LDK Solar Germany Holding GmbH published the total number of
voting rights attributable to it: with about 71 % of the share capital and
voting rights it had become Sunways AG's majority shareholder and sole
shareholder with a reportable voting interest.
Prospects for the fiscal year 2012
The situation in the global photovoltaics markets will continue to be marked by
significant pressure on prices and competitive pressures in the current fiscal
year. "Our objective for the fiscal year 2012 is to stabilize our sales
revenues", says Michael Wilhelm, Chairman of the Management Board of Sunways AG.
"As far as the operating result (EBIT) is concerned, we expect to reduce our
losses."
"As a member of the LDK Solar Group, Sunways will have access to the Chinese
market and other international growth markets and customer segments. Purchasing
benefits with respect to primary products from the LDK Solar Group and the
access to production plants in China may significantly improve the Sunways
Group's profitability", says Wilhelm. In addition, LDK Solar and Sunways are
planning to complement each other's product portfolio and to jointly develop new
products, such as e.g. high-performance solar modules and inverters for new
markets and requirements.
"The LDK Solar Group also supported our funding activities", adds Michael
Wilhelm. "In particular, we appreciate LDK's support in financing the Company by
extended payment terms for goods and services from China."
Key figures Q1/2012
Group
Sales revenues: EUR 10.4 million (Q1/2011: EUR 22.2 million)
EBITDA: EUR -5.1 million (Q1/2011: EUR -1.9 million)
EBIT: EUR -6.8 million (Q1/2011: EUR -3.5 million)
Consolidated net income/loss: EUR -7.3 million (Q1/2011: EUR -2.7 million)
Earnings per sharee: EUR -0.42 (Q1/2011: EUR -0.23)
Sales revenues Germany: EUR 7.1 million (Q1/2011: EUR 9.4 million)
Sales revenues rest of Europe: EUR 2.9 million (Q1/2011: EUR 12.8 million)
Number of employees (31/03/2012): 299 (31/03/2011: 348)
Solar cell segment
Sales revenues: EUR 4.0 million (Q1/2011: EUR 7.5 million)
EBIT: EUR -1.6 million (Q1/2011: EUR -0.8 million)
Sales volume: 4.9 MWp (Q1/2011: 6.8 MWp)
Solar module segment
Sales revenues: EUR 5.1 million (Q1/2011: EUR 16.4 million)
EBIT: EUR -2.5 million (Q1/2011: EUR -1.1 million)
Sales volume: 6.4 MWp (Q1/2011: 11.7 MWp)
Solar inverter segment
Sales revenues: EUR 4.1 million (Q1/2011: EUR 3.1 million)
EBIT: EUR -2.7 million (Q1/2011: EUR -1.6 million)
Sales volume: 24.3 MWp (Q1/2011: 12.6 MWp)
This press release is also available on http://www.sunways.eu/en or at
http://www.presseportal.de/pm/57666/sunways_ag.
Q1 financial report is available at
http://www.sunways.eu/en/company/investor-relations/financial-reports/quarterly-reports/.
Forward-looking statements
This press release contains statements relating to the future business
development of Sunways AG that are based on management assumptions and estimates
made at the time of publication. Should the assumptions underlying the prognoses
fail to be fulfilled, actual events may vary substantially from forward-looking
statements. Uncertainties include changes in the political, legal, economic and
business environment, exchange and interest rate fluctuations as well as the
behaviour of competitors and other market participants. Sunways does not intend
and is not under any obligation to update forward-looking statements on an
ongoing basis as these are exclusively based on the circumstances prevailing as
of the date of publication.
About Sunways
Sunways AG, Konstanz/Germany, stands for consistent use of solar energy to
secure long-term energy supply of man in an efficient and sustainable manner.
Sunways offers technological competence, performance and highest quality - from
single components to complete solar systems.
Since its foundation in 1993, Sunways AG evolved into a technology leader in the
photovoltaics industry serving international markets. With silicon-based solar
cells, inverters, solar modules and solar systems, the company offers all
components required for high-yield photovoltaic power generation. With
photovoltaic solutions tailored to customers' needs (transparent and coloured
solar cells, building- integrated photovoltaic installations), Sunways turns
exceptional ideas into reality.
Sunways Production GmbH in Arnstadt/Germany is a subsidiary of Sunways AG; in
addition, the group has own branch offices in Barcelone/Spain and Bologna/Italy.
In 2011, Sunways AG with about 330 employees realised sales of around EUR 115
million.
The shares of Sunways AG are listed at the Frankfurt Stock Exchange (SWW:GR,
SWWG.DE, ISIN DE0007332207).
For further information, please visit http://www.sunways.eu/en.
Further inquiry note:
Dr. Harald F. Schäfer
Head Corporate Communications and Investor Relations
Tel.: +49 (0)7531 996 77-415
E-Mail: communications@sunways.de
end of announcement euro adhoc
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company: Sunways AG
Macairestr. 3 - 5
D-78467 Konstanz
phone: +49 (0)7531 99677 0
FAX: +49 (0)7531 99677 10
mail: info@sunways.de
WWW: http://www.sunways.eu/de
sector: Alternative energy
ISIN: DE0007332207
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English