International expansion and ongoing cost improvements produce record figures for revenue and earnings; positive outlook for 2011
- Q2 revenue more than doubles year on year
- EPS over last 12 months (pro forma) of EUR 1.26
- Positive outlook for 2011 thanks to strong international sales organisation
Munich, August 4, 2010 – With revenue of EUR 209 million and an operating result of EUR 21.1 million for the first half of the year, CENTROSOLAR Group AG easily succeeded in bettering the previous year's figures (revenue EUR 122 million, earnings EUR -11.3 million).
Within the second quarter in particular, new records were set for revenue and earnings. For example, Q2 revenue of EUR 124 million was more than double the figure for the prior-year quarter and around 46% up on the previous quarter. The operating result before interest and taxes (EBIT) of EUR 12.9 million both easily exceeded the previous quarterly record and surpassed the company's own expectations; this meant that more than three-quarters of the previously upgraded earnings forecast of EUR 24 to 28 million had already been achieved by mid-way through the year.
Net earnings of EUR 13.0 million in the first half (prior-year period EUR -37.1 million) equate to earnings per share (EPS) of EUR 0.64. Considering the past four quarters together, pro forma earnings per share of EUR 1.26 have been achieved over the past twelve months.
The substantial increase in solar module production capacity in April from 110 MWp to currently around 155 MWp has still not been enough to meet fully the high level of demand from both Germany and other European core markets, particularly France and Italy. The substantial fall in demand in Germany expected at least in the third quarter can be largely offset by CENTROSOLAR's strong international position, with the result that the company expects revenue for 2010 as a whole to be in excess of EUR 370 million.
With the sales market as a whole performing robustly, the lack of availability of high-quality cells in recent weeks has led to a sizeable rise in purchase prices. In light of this, the gross margin is expected to decline in the third quarter. Given the continuing sharp growth in cell manufacturing capacity worldwide, we believe this is a transitional effect. However, because the precise extent and duration of the temporary reduction in margins cannot yet be forecast accurately, the most recent EBIT forecast of EUR 24 to 28 million is retained for the time being even if the lower end of this bandwidth appears to be too conservative as matters stand.
CENTROSOLAR Group AG approaches 2011 in a very positive frame of mind. This is because unlike many other solar businesses, CENTROSOLAR is profiting from a market characterised by surplus capacity, as is indeed forecast for 2011. On the one hand the company is one step closer to the customer thanks to its strong international setup with an area-wide sales network in the major sales markets for photovoltaic roof systems, which are expected to enjoy strong growth likewise in 2011. On the other hand the company's flexible purchasing policy will enable it to secure favourable purchasing terms amid the price war that is then likely to break out among solar cell manufacturers. On this basis, the company yet again expects both volume growth, especially on its export markets, and attractive margins in 2011.
About CENTROSOLAR Group AG:
The listed company CENTROSOLAR Group AG, Munich, (stock exchange code WKN 540750) is one of the leading suppliers of photovoltaic (PV) systems for roofs and key components, with over 1,000 employees in Europe and the USA and annual revenue in excess of EUR 300 million (2009). Its product range comprises solar integrated systems, modules, inverters, mounting systems and solar glass. It generates around half its revenue internationally. There are CENTROSOLAR branches in Spain, Italy, France, Greece, Switzerland, the Netherlands and the USA.
CENTROSOLAR has a solar glass manufacturing plant in Fürth and a module production plant in Wismar (Germany). Over the past two years, the production lines for the finishing of glass have been substantially extended in response to rising demand and now have an annual production capacity of up to six million square metres. Module manufacturing was also stepped up quite substantially in response to soaring demand. The module plant certified to DIN ISO 9001:2000 in Wismar is one of the largest and most effective such plants in Europe, with an annual capacity currently of 155 MWp. For further information, visist: www.centrosolar.com.
For further information, please contact:
MetaCom Corporate Communications GmbH
Georg Biekehör, Tel.: +49 (0) 6181 982 80 30
E-Mail: g.biekehoer(at)go-metacom.de