Strategic realignment of Solar-Fabrik AG with focus on core area of solar electricity systems is proving to be successful; significant recovery in the operational business in the second half of the year
Ad-hoc announcement dated 7 August 2009
In the first half of 2009, Solar-Fabrik AG (ISIN: DE0006614712) generated consolidated sales amounting to 48.245 million euros (PY: 76.048 million euros). Earnings before tax and interest (EBIT) of the business units to be continued were -3.641 million euros (PY: -2.651 million euros). Taking into account the results of the discontinued business units, or those held for sale, the result for the period amounts to -9.429 million euros (PY: 2.015 million euros). The core segment of the solar electricity modules was defined in the first six months of 2009 by buyer reticence and falling prices. This was associated with an investment backlog that is now successively being reduced as prices have all but stabilized. Solar-Fabrik is benefiting in its purchasing activities in the long term from stable low prices.
Solar-Fabrik AG has consistently implemented the concept of order-based production. Growing demand and contracts that have already been signed mean that significant growth in sales is expected for Q3 2009. The consistently high number of incoming orders since June is continuing. With the capacities created in the new, highly modern plant 3, Solar-Fabrik is ideally equipped for the increase in demand which is now discernible. Production at the highly automated new plant started in March 2009 and is now running in 3-shift operation to keep pace with further growth.
Turnover in the ‘Solar electricity systems’ segment was 48.245 million euros (PY: 75.864 million euros) as of 30 June 2009. Sales in the 2nd quarter increased in comparison to the first quarter but are still below the level of the previous year. The decline in turnover has resulted in a segment result of -4.100 million euros (PY: -2.829 million euros).
In the first half of 2009, the ‘Solar Cells’ business unit posted profits of 588,000 euros (PY: -23,000 euros). A positive result is expected for the year overall.
Solar-Fabrik AG is consistently continuing the course it has set itself of focusing and optimising its business. The discontinued business unit ´Wafer´ was deconsolidated as of 11 May 2009. Effective August 6, 2009, Solar-Fabrik AG has sold its 80 percent holding in Solar-Fabrik Silicon Services Ltd. (SFSS), which itself holds 100 percent of the shares in Poseidon Solar Services Pte. Ltd.. Solar-Fabrik has thus left the field of wafer preparation to focus all of its attention on its core business of solar power modules and systems. In the interim financial report for Q2 2009, 3.850 million euros have therefore been written off of the Group’s assets from this sale. In return, Solar-Fabrik AG has received cash in the amount of around 900,000 euros from the sale.
For the second half of the year, Solar-Fabrik AG sees a substantial recovery in the demand for solar electricity modules. The significant and continuous increase in incoming orders that has been discernible since as early as June is driven by overall stronger sales success and the excellent positioning in the French in-roof market. In addition, contracts have already been concluded with new customers for major projects with a scope of 7 MWp and another 20MWp for 2009 have been announced. Solar-Fabrik will be working at full capacity again as early as Q3. In the course of the year, Solar-Fabrik is anticipating further progress in productivity and turnover, among others through initial successes in the US. Solar-Fabrik is thus expecting a substantial increase in turnover and an improvement in results in the core business for the 2nd half of the year.
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