EANS-Adhoc: SOLON SE SOLON Presents Figures for the First Nine Months of 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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quarterly report
15.11.2011
SOLON Presents Figures for the First Nine Months of 2011
- Group revenues of EUR358.2 million for the first nine months of 2011
- Net income burdened by decline in prices and one-time effects from operational
and financial restructuring
- EBIT loss of EUR113.8 million; Group net loss of EUR208.3 million
- One-time effects result in negative equity in the SOLON Group based on IFRS;
based on HGB accounting, equity of the parent company SOLON SE remains positive
Berlin, November 15, 2011. Berlin-based SOLON SE today presented its figures for
the period ended September 30, 2011. Performance in the major solar markets
continued to be very disparate in the third quarter of 2011. The market in Italy
picked up again robustly after the new Italian feed-in tariff law (Conto Energia
IV) was implemented. By late August, numerous large power plant projects were
concluded for the purpose of still being able to benefit from the previous,
significantly higher compensation rates. The US solar market, which continues to
be dominated by the solar activities of local electric utilities, also showed
positive performance and is expected to double once again this year. In
contrast, the German market continued to fall short of the expectations for the
industry. Demand did pick up in the third quarter; however, the anticipated
year-end rally has so far not materialized. In the presence of overcapacity in
the market, this resulted in a further significant decline in module prices.
In this persistently difficult market environment, SOLON´s Group revenue
declined by 11% to EUR358.2 million in the first nine months of 2011 (prior-year
period: EUR402.9 million). Sales for the third quarter of 2011 amounted to
EUR136.4 million (Q3 2010: EUR160.56 million). Some 83% of Group revenues in the
first nine months were generated outside of Germany, and 61% come from the power
plant business. SOLON sold photovoltaic systems with a total operating
performance of 179 MW between January and September 2011 (prior-year period: 194
MW). As of September 30, 2011, SOLON had a total of 798 employees at various
locations in Europe and the USA.
In the third quarter of 2011, SOLON generated a positive cash flow from
operating activities of EUR21.4 million, primarily in response to the lower
working capital. The operating cash flow for the first nine months improved to a
net cash outflow of EUR5.7 million. For 2011, SOLON expects to achieve a
positive cash flow from operating activities.
The EBIT loss amounted to EUR113.8 million in the period under review
(prior-period: EBIT loss of EUR5.5 million). In addition to the unsatisfactory
business performance and the persisting price decline in the market, the
operating result was impacted by mostly non-cash one-time effects of EUR103
million. These resulted for the most part from impairment losses recognized for
projects, inventories and prepayments, but also from expenses in connection with
the implementation of the restructuring program, including the cessation of
production in the USA. Adjusted for these one-time effects, the EBIT loss for
the first nine months of 2011 amounted to EUR11 million.
The net loss for the period was EUR208.3 million (prior-year period: net loss of
EUR17.5 million) and includes additional non-cash one-time effects of EUR80
million due to impairments in the investment portfolio as well as expenses
related to the financial restructuring. Adjusted for all one-time effects, SOLON
reported a net loss after tax for the period under review of EUR25 million.
Compared to the prior quarter, the Company's net debt decreased slightly by
EUR6.4 million to EUR396.0 million (June 30, 2011: EUR 402.4 million). The sale
of projects and the write-downs of inventories reduced inventory levels to
EUR96.0 million (June 30, 2011: EUR142.0 million). Receivables due as of
September 30, 2011 decreased to EUR110.3 million (June 30, 2011: EUR131.3
million). As a result, working capital declined by EUR54.3 to EUR130.0 million
compared to the previous quarter (June 30, 2011: EUR184.3 million), reflecting a
ratio of working capital to revenue of 23% for the last 12 months.
Due to the net loss for the period under review of EUR208.3 million, SOLON's
consolidated interim financial statements based on IFRS for the period ended
September 30, 2011 show negative shareholders' equity of EUR103.1 million. This
also reflects the negative income contributions (in accordance with IFRS) of
subsidiaries. In contrast, the shareholders' equity of the parent SOLON SE as
based on the German Commercial Code (HGB) showed a positive figure of EUR31.1
million as of the reporting date.
In addition to the reduction of net debt, the planned financial restructuring of
the Company also provides for strengthening the equity base. The SOLON
Management Board plans to press ahead with the successful implementation of this
process in the fourth quarter of 2011 and conclude it by the end of April 2012.
The complete interim report of SOLON SE for the period ended September 30, 2011,
is available for download from the company´s website (www.solon.com).
SOLON SE
Therese Raatz
Investor Relations
Telefon: 030 / 818 79 - 9305
Fax: 030 / 818 79 - 9300
E-Mail: 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