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Financial Figures/Balance Sheet/quarterly report/6-month report
Subtitle: - Increase in solar inverter sales volume
- Production bottlenecks affect solar module sales volumes and solar cell
production
- Focus on new markets
Konstanz/Germany (euro adhoc) - 5 October 2012 - In the second quarter of 2012,
the solar inverter segment of Sunways AG (SWW:GR, SWWG.DE, ISIN DE0007332207)
participated in the development of the photovoltaics markets. Although these
markets continued to be marked by global excess capacities and consolidation
trends in the industry, brisk demand was experienced in Germany due to the
announced amendment to the Renewable Energies Act (EEG). While sales volumes in
the solar inverter segment reflected the positive market development, sales
volumes in the solar module segment declined as the availability of such
products was limited due to continuing shortages of raw materials for the
production of solar modules at LDK Solar. While, due to the demand situation,
selling prices for solar modules remained largely stable in the second quarter,
pressure on the selling prices for solar inverters intensified.
The Sunways Group's sales revenues for the period from April through June 2012
amounted to EUR 17.2 million and thus declined by more than half against the
relevant prior year quarter (Q2/2011: EUR 38.7 million). The operating profit
before interest and taxes (EBIT) at EUR -6.5 million was again markedly negative
(Q2/2011: EUR -6.3 million). Taking into account deferred taxes relating to loss
carry-forwards, earnings after taxes in the second quarter of 2012 were EUR 1.1
million.
In the first half of 2012, the Sunways Group generated sales revenues of EUR
27.6 million (H1/2011: EUR 60.9 million). In the same period, the operating loss
(EBIT) amounted to EUR 13.3 million (H1/2011: EUR -9.8 million). Earnings after
taxes in the first six months of 2012 were EUR -6.2 million; as of 30 June 2011,
earnings after taxes (after adjustments for the earn-out relating to the sale of
MHH Solartechnik) had been EUR -7.3 million.
In the international markets, the Sunways Group generated sales revenues of EUR
8.2 million (Q1/2011: EUR 19.4 million) in the reporting period. Thus the
international business accounted for 47.7 percent of total sales, compared to
50.4 percent in the second quarter of 2011. Sunways experienced a significant
growth in individual markets of Eastern Europe, such as e.g. in Bulgaria, and
Greece. In the first six months of 2012, international sales amounted to EUR
11.4 million and thus declined by 64.7 percent against the comparable prior year
period; in the first half of 2011, Sunways had generated international sales of
EUR 32.3 million.
Solar module production bottlenecks with negative impact
In the solar module segment, Sunways generated sales revenues of EUR 7.7 million
(Q2/2011: EUR 29.1 million) in the second quarter of 2012, a drop by 74 percent
compared to the relevant prior year period. This was inter alia due to the
drastic decline in market prices by more than 40 percent against the period from
April through June 2011. In addition, the supply of Sunways solar modules was
insufficient due to wafer shortages at the beginning of the current year as well
as module production bottlenecks at LDK Solar. Although this supply situation
was to some extent offset by sales of LDK merchandise, the solar module sales
volume decreased by 56.7 percent against the prior year to 9.4 megawatts peak in
the second quarter of 2012 (Q2/2011: 21.7 megawatts peak).
Sales in the solar cell segment declined by 77.7 percent from EUR 26.5 million
in the second quarter of 2011 to EUR 5.9 million in the second quarter of 2012.
In the second quarter of 2011, sales revenues increased due to the start of the
solar module production cooperation with LDK Solar. The decline in sales against
the prior year was also due to the deterioration in market prices as well as
solar module production bottlenecks at LDK Solar. Sales volumes of solar cells
also decreased against the prior year by 58.8 percent to 11.2 megawatts peak
(Q2/2011: 27.0 megawatts peak). Sunways solar cells are mainly used to produce
the company's own solar modules; sales revenues are only recognized when
marketable solar modules are available. Due to the module production bottlenecks
at LDK Solar, the solar cell production at Sunways Production GmbH had to be
reduced in the second quarter to avoid excess inventories.
Growth in the solar inverter segment
For the period from April through June 2012, Sunways reported sales revenues of
EUR 8.8 million in the solar inverter segment - an increase by 10 percent
(Q2/2011: EUR 8.0 million). In terms of capacity sold, the sales volume of
Sunways solar inverters of 61.2 megawatts peak rose by 60.2 percent against the
comparable prior year quarter (Q2/2011: 38.2 megawatts peak). Owing to brisk
demand, some supply bottlenecks occurred, mainly with respect to large devices.
However, due to pressures on selling prices, this significant rise in sales
volume did not result in a corresponding increase in sales revenues and margins.
Focus on new markets
Since May this year, Sunways has for the first time been offering its products
in the Australian market in a targeted manner. Within the framework of a
partnership initially entered into for a one-year period, Solar Energy Australia
Ltd. is marketing Sunways solar inverters in Australia on an exclusive basis.
Initial sales revenues were already reported in the second quarter. Thus Sunways
is positioning itself in a major international market of the future: over recent
years, the Australian photovoltaics market recorded a steady growth which,
according to the opinion of experts, will increase further in the future.
Prospects for the fiscal year 2012
Against the background of weaker overall economic growth expectations worldwide,
the global situation of the photovoltaics industry, in particular that of
manufacturers, continues to be affected by the massive deterioration of prices
due to substantial excess capacities, strong competitive pressures and
increasing consolidation. In all, this results in continuous pressure on
achievable margins and, accordingly, has a negative impact on earnings and
cash-flows.
"This difficult market environment constitutes a great challenge for all market
participants. In this phase of market consolidation, efficient actions must be
based on targeted and coordinated market activities. In this context, the LDK
Solar Group, due to the global activities of all its companies in the areas of
sales and supply, will enable Sunways to strengthen its competitiveness in the
long term and to return to profitable corporate growth", says Michael Wilhelm,
Chairman of the Management Board of Sunways AG.
With respect to solar modules, Sunways will mainly rely on brand strength and
service quality. Thanks to its extensive know-how relating to the development of
highly efficient solar cells, Sunways is to play an important role in this area
as a technology center in the future. Finally, there are plans to enter the
U.S., Canadian and Chinese markets for solar inverters together with LDK Solar.
The goals of Sunways in the fiscal year 2012 are to stabilize the development of
its sales volumes and sales revenues and to reduce its losses compared to the
fiscal year 2011. Against the background of steadily changing political and
economic framework conditions, no more detailed prognosis can be given for the
current fiscal year.
Key figures Q2/2012
Group
Sales revenues: EUR 17.2 million (Q2/2011: EUR 38.7 million)
EBITDA: EUR -4.4 million (Q2/2011: EUR -4.7 million)
EBIT: -6,5 million (Q2/2011: -6,3 million)
Consolidated net income: EUR 1.1 million (Q2/2011: EUR 0.2 million)
Eearnings per share: EUR 0.06 (Q2/2011: EUR 0.01)
Sales revenues Germany: EUR 9.0 million (Q2/2011: EUR 19.2 million)
Sales revenues rest of Europe: EUR 8.0 million (Q2/2011: EUR 19.4 million)
Number of employees (30 June 2012): 286 (30 June 2011: 347)
Solar cell segment
Sales volume: 11.2 MWp (Q2/2011: 27.0 MWp)
Sales revenues: EUR 5.9 million (Q2/2011: EUR 26.5 million)
EBIT: EUR -0.9 million (Q2/2011: EUR -2.1 million)
Solar module segment
Sales volume: 9.4 MWp (Q2/2011: 21.7 MWp)
Sales revenues: EUR 7.7 million (Q2/2011: EUR 29.1 million)
EBIT: EUR -3.1 million (Q2/2011: EUR -3.6 million)'
Solar inverter segment
Sales volume: 61.2 MWp (Q2/2011: 38.2 MWp)
Sales revenues: EUR 8.8 million (Q2/2011: EUR 8.0 million)
EBIT: EUR -2.5 million (Q2/2011: EUR -0.6 million)
Key figures H1/2012
Group
Sales revenues: EUR 27.6 million (H1/2011: EUR 60.9 million)
EBITDA: EUR -9.5 million (H1/2011: EUR -6.5 million)
EBIT: EUR -13.3 million (H1/2011: EUR -9.8 million)
Consolidated net loss: EUR -6.2 million (H1/2011: EUR -2.5 million)
Earnings per share: EUR -0.36 (H1/2011: EUR -0.21)
Sales revenues Germany: EUR 16.2 million (H1/2011: EUR 28.6 million)
Sales revenues rest of Europe: EUR 10.8 million (H1/2011: EUR 32.3 million)
Solar cell segment
Sales volume: 16.1 MWp (H1/2011: 33.8 MWp)
Sales revenues: EUR 10.0 million (H1/2011: EUR 34.0 million)
EBIT: EUR -2.5 million (H1/2011: EUR -2.9 million)
Solar module segment
Sales volume: 15.8 MWp (H1/2011: 33.4 MWp)
Sales revenues: EUR 12.8 million (H1/2011: EUR 45.5 million)
EBIT: EUR -5.6 million (H1/2011: EUR -4.7 million)
Solar inverter segment
Sales volume: 85.4 MWp (H1/2011: 50.8 MWp)
Sales revenues: EUR 12.9 million (H1/2011: EUR 11.1 million)
EBIT: EUR -5.2 million (H1/2011: EUR -2.2 million)
This press release is also available at http://www.sunways.eu/en or
http://www.presseportal.de/pm/57666/sunways-ag.
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.
About LDK Solar
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer
of photovoltaic products. LDK Solar manufactures e.g. polysilicon, mono and
multicrystalline wafers, solar cells, and solar modules. LDK Solar's
headquarters and principal manufacturing facilities are located in Hi-Tech
Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China.
For more information about LDK Solar and its products, please visit
http://www.ldksolar.com.
Further inquiry note:
Dr. Harald F. Schäfer
Head of 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