EANS-Adhoc: SOLON SE SOLON Presents Figures for H1 2011
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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.
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10.08.2011
SOLON Presents Figures for H1 2011
- Group revenues lower than expected at EUR221.9 million
- Negative EBIT of EUR32.7 million; EUR63.1 million net loss
- Investment in Blue Chip Energy GmbH fully written off
Berlin, August 10, 2011. Berlin-based SOLON SE today presented its figures for
the period ended June 30, 2011.
In the past quarter, business performance continued to be impacted by a weak
market environment. In the period from April to June in particular, demand in
Germany lagged significantly behind expectations. Against the backdrop of the
nuclear energy debate, many customers appear to have deferred the purchase of
solar systems or speculated on a further erosion of system prices.
In the persistently difficult market environment, SOLON generated Group revenue
of EUR221.9 million in the first six months of the year, of which EUR156.7
million came from the second quarter. This represents an increase by 140% from
the weak initial quarter of 2011. At the same time, revenues in the first half
of 2011 were 8% lower year on year (H1 2010: EUR242.4 million). This means the
company missed its revenue target for the first six months. Some 57% of sales
revenues came from the power plant business in the first half of the year, and
79% were generated outside of Germany. SOLON produced photovoltaic systems with
a total operating performance of 114 MW in the reporting period (H1 2010: 117
MW). As of June 30, 2011, SOLON had a total of 805 employees at various
locations in Europe and the USA (December 31, 2010: 912).
The weak revenue performance also had a negative effect on the earnings side. As
a consequence, the company posted an EBIT loss of EUR32.7 million (H1 2010:
EUR2.3 million EBIT loss) and a EUR63.1 million net loss (H1 2010: EUR9.5
million net loss). This corresponds to a net loss per share of EUR3.66 (H1 2010:
EUR0.73 net loss). Net financing expenses amounted to EUR32.7 million in the
reporting period (H1 2010: net financing expense of EUR11.5 million). Alongside
higher interest expenses, it included special effects in the amount of EUR18.0
million related to the insolvency of the Austrian cell manufacturer Blue Chip
Energy GmbH (full impairment loss on a shareholder loan and the interest on it).
Against the backdrop of the weak business performance, net debt as of June 30,
2011 remained high at EUR402.4 million (March 31, 2011: EUR402.1 million).
Working capital decreased by EUR28.7 million to EUR184.3 million (March 31,
2011:EUR213.0 million), which represents a working capital ratio of 31% in
relation to revenues of the past twelve months. Receivables due as of June 30,
2011 declined by EUR17.1 million to EUR131.3 million from the prior quarter
(March 31, 2011: EUR148.4 million). Inventories of finished and unfinished goods
dropped to EUR142.0 million as of June 30, 2011, due to forced sales accompanied
by an adjustment of production planning (March 31, 2011: EUR160.3 million).
The business trend in the current quarter indicates a noticeable revival of
demand in Germany. First signs of recovery are evident in Italy, too, at least
in the industrial rooftop segment, which in contrast to large greenfield
installations still offers attractive returns under the new Italian feed-in law.
As a provider of a number of photovoltaic systems tailored for this segment,
SOLON is well prepared for the changed market conditions in Italy.
Considering the uncertainty regarding the speed of the expected market recovery
in the primary markets of Germany and Italy, however, SOLON management does not
at this point expect to offset the revenues lost in the first six months by the
end of the current year. Accordingly, it confirmed its recently adjusted revenue
and earnings outlook. For the year as a whole, Group revenue is now expected to
be around EUR500 million, with a significant net loss and EBIT loss.
In response to the weak operating performance, management stepped up the ongoing
restructuring measures. In this context, additional cost reduction potentials in
the double-digit millions were identified in cooperation with experienced
consultants; they are now being implemented as priorities with the objective of
adapting cost structures to the changed conditions as quickly as possible and
hence strengthening the competitiveness of SOLON in this difficult market
environment. SOLON management is also engaged in intensive negotiations with the
lending banks and guarantors regarding the restructuring of corporate financing
and is confident that these negotiations will be successfully concluded in the
course of the fourth quarter.
The complete interim report of SOLON SE for the quarter ended June 30, 2011, is
available for download from the company´s website (www.solon.com).
SOLON SE
Therese Raatz
Investor Relations
Phone: 030 / 818 79 - 9305
Fax: 030 / 818 79 - 9300
Email: investor@solon.com
Further inquiry note:
Therese Raatz
Head of Corporate Communications
Tel.: +49 30 818 79-9305
E-Mail: therese.raatz@solon.com
end of announcement euro adhoc
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issuer: SOLON SE
Am Studio 16
D-12489 Berlin
phone: +49 30 818 79-9305
FAX: +49 30 818 79-9300
mail: investor@solon.com
WWW: www.solon.com
sector: Energy
ISIN: DE0007471195
indexes: Midcap Market Index, CDAX, HDAX, Technology All Share, GEX, ÖkoDAX
stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing:
Berlin, Hamburg, Stuttgart, Düsseldorf, München
language: English