Phoenix Solar Aktiengesellschaft
EANS-News: Phoenix Solar focuses on international operations and new business
models
Financing extended until end of March 2015
Change in the position of CEO
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Strategic management decisions
Sulzemoos (euro adhoc) - Phoenix Solar focuses on international operations and
new business models
Financing extended until end of March 2015 / Change in the position of CEO
Sulzemoos 11 February 2013 / Phoenix Solar AG (ISIN DE000A0BVU93), an
internationally leading photovoltaic system integrator listed on the Prime
Standard of the Frankfurt Stock Exchange, has decided to part company with a
number of loss making operations due to the fact that the market environment
raises severe doubts about their recovery in the near term.
Subsequently, Phoenix Solar will lay enhanced focus on the strongly growing
regions of Asia and the USA where its regional subsidiaries have successfully
established themselves in their respective markets. The North American and Asian
operations have ramped up the capacities and competencies necessary to
sustainably manage, develop and expand their businesses in an operationally
independent manner. Our subsidiary in the US, established in 2010 grew its sales
by a factor of almost eight in 2012 and subsequent to the planned initial losses
during the start-up phase now reports a profit well above expectations. Our
Singapore subsidiary - the cornerstone of our Asian business - reports a strong
order backlog and plans to quadruple its sales as compared with 2012.
In Europe, the French and Greek subsidiaries are well positioned and profitable.
Capacities in Spain and Italy on the other hand have been significantly reduced
in view of the uncertainties in their local markets and their challenges in
reaching earnings targets. The subsidiary based in Oman is to be closed.
The components & systems and the power plant businesses in Germany will be
divested. In addition to the components & systems and power plant activities of
the aforementioned international subsidiaries, the profitable operations &
maintenance unit located in Ulm, as well as the development of new business
models for the project and distribution businesses, will remain an important
focus of the company moving forward.
Financing for the Group will continue to be secured by Phoenix Solar AG. The
lending banks have been consulted in detail about this shift in strategy towards
a fast return to profitable growth. Today, the company signed contract
amendments regarding the corresponding credit agreements. Accordingly, the total
financing volume was slightly adjusted down to approximately EUR 126 million.
The credit lifetime was extended ahead of schedule by another year from 31 March
2014 to 31 March 2015.
This shift in strategy will necessitate that extraordinary expenses - largely
write-downs and provisions - be accounted for in the financial statements as of
31 December 2012. Prior to these extraordinary expenses of approximately EUR 8
million, the most recent revenue and earnings forecasts for the 2012 financial
year would have been fully met. Including these expenses, however, preliminary
figures show operating losses (negative EBIT) of around EUR 32 million
(operating losses 2011: EUR 84.7 million; previously forecasted for 2012: EUR 25
million to EUR 19 million operating losses). In contrast to previous
expectations for 2013, Phoenix Solar now expects its revenues to reach EUR 160
million to EUR 190 million, significantly less than the original forecast of EUR
280 million to EUR 310 million. The previous earnings forecast (EBIT less
restructuring expenses), however, of around EUR 5 million losses and EUR 0
million is being maintained.
Dr. Andreas Hänel, founding Director of Phoenix Solar AG, today announced his
resignation from his position as member of the Board of Management ahead of time
and effective 28 February 2013. Expressing its regret, the Supervisory Board
accepted his resignation. The Board extended its gratitude to Dr. Hänel for his
long-year and successful service as CEO, which in 2008 led Phoenix Solar AG to a
TecDAX listing. Showing complete dedication, Dr. Hänel also managed the company
throughout the recent difficult restructuring. He will continue to serve the
company in a consulting capacity.
Also today, the Supervisory Board has appointed Dr. Bernd Köhler CEO effective 1
March 2013. Dr. Köhler will continue to also serve as CFO of the company. Dr.
Murray Cameron remains member of the Board of Management and in charge of
Operations (COO) as well as CEO & President of the US subsidiary.
"The discontinued operations made significant operating losses in 2012. This did
not come unexpectedly. But the ongoing adverse market effects and the regulatory
changes in disfavour of photovoltaics made it increasingly unlikely that the
expected increase in shipments which was needed for a return to profitability
would actually come to occur in spite of numerous efforts by staff and
management. Therefore, we had to react with the severe cuts we are now executing
although this means to dismiss many qualified employees", said Dr. Bernd Köhler.
Dr. Murray Cameron added: "Next to a reliable financing the ability to flexibly
and quickly shift gears is one central requirement to maintain a significant
position in the international photovoltaic markets. The clear focus on the
successful regions is a good starting point for our return to profitable
growth."
About Phoenix Solar AG
Phoenix Solar AG, which has its headquarters in Sulzemoos near Munich, is a
leading international photovoltaic system integrator. The Group develops, plans,
builds and operates large-scale photovoltaic plants and is a specialist
wholesaler for turnkey power plants, solar modules and accessories. With
subsidiaries on three continents, the company has sold solar modules with an
output of more than one gigawatt since its founding. The shares of Phoenix Solar
AG (ISIN DE000A0BVU93) are listed on the official market (Prime Standard) of the
Frankfurt Stock Exchange. {www.phoenixsolar-group.com}[HYPERLINK:
http://www.phoenixsolar-group.com]
Further inquiry note:
Dr. Joachim Fleing
Investor Relations Representative
Phoenix Solar AG
Tel.: +49 8135 938-315
email: j.fleing@phoenixsolar.de
end of announcement euro adhoc
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company: Phoenix Solar Aktiengesellschaft
Hirschbergstraße 8
D-85254 Sulzemoos
phone: +49 (0)8135-938-000
FAX: +49 (0)8135-938-099
mail: kontakt@phoenixsolar.de
WWW: http://www.phoenixsolar-group.de
sector: Energy
ISIN: DE000A0BVU93
indexes:
stockmarkets: free trade: Hannover, Berlin, Hamburg, Düsseldorf, Stuttgart,
M:access: München, regulated dealing/prime standard: Frankfurt
language: English