12 November 2009
Ad-hoc release: Phoenix Solar AG presents its figures for the third quarter and adjusts its revenue guidance to changed boundary conditions
Sulzemoos - Phoenix Solar AG (ISIN DE000A0BVU93), a leading photovoltaic system integrator listed on the TecDAX, is today releasing its figures as per 30 September 2009. Seen from an operational standpoint, the two segments of "Power Plants" and "Components & Systems" developed in very different directions in the third quarter of 2009 and generally fell short of own expectations.
In the three months from 1 July to 30 September 2009, domestic business in the Components & Systems segment was the dominant factor. Despite sharp declines in modules prices, revenues in this segment climbed by 11.4 percent to EUR 76.2 million (Q3/2008: EUR 68.4 million). Business in the Power Plants segment remained difficult. The implementation of large-scale power plants continued to suffer from delays in financing and the granting of approvals. Revenues of this segment came to EUR 13.5 million, which is 83.3 percent below the previous year's quarter (Q3/2008: EUR 80.9 million) during which high revenues and profits were generated, above all in the Spanish market.
Reflecting the development of the segments, consolidated revenues stood at EUR 89.7 million in the reporting period, which is around 40 percent short of the year-earlier level (Q3/2008: EUR 149.8 million). Earnings before interest and taxes (EBIT) was positive in the third quarter, despite the downturn in revenues, and came to EUR 3.0 million as compared with EUR 17.6 million posted in the third quarter of 2008. The EBIT margin (ratio of EBIT to revenues) for the quarter stood at 3.3 percent as compared with the year-earlier figure of 11.8 percent.
The consolidated result after tax was EUR 1.0 million, which is considerably below the year-on-year figure of EUR 13.7 million.
Over the first nine months of 2009, the Phoenix Solar Group generated consolidated revenues of EUR 242.2 million (Q1-Q3/2008: EUR 301.1 million). EBIT posted EUR -4.4 million (Q1-Q3/2008: EUR 29.1 million).
Orders in hand totalled EUR 164 million on 30 September 2009, distributed between the two segments as follows: EUR 105 million in the Components & Systems segment and EUR 59 million in the Power Plants segment.
At the start of the fourth quarter of 2009, sales of the Components & Systems accelerated once again. Construction activities in the Power Plants segment also picked up speed at the start of the fourth quarter.
The positive development of business in the fourth quarter to date must be seen in the context of risks which may hamper the achieving of guidance or even render it impossible. Along with difficult weather conditions which may delay or hinder construction work on photovoltaic plants, examples of these risks include bottlenecks or delays in the delivery of solar modules and inverters as well as further delays in the financing or granting of approvals of power plants. There are already signs that, along with the aforementioned risks, there will not be enough solar modules available through to the end of the year to achieve the original revenue guidance.
After careful consideration of the prevailing opportunities and risk situation, the Board of Directors has decided to adjust its annual revenue guidance of around EUR 520 million to the current situation. The Board now assumes that revenues will settle within a corridor of between EUR 430 and EUR 480 million. Guidance released in June in respect of a positive EBIT at year-end remains unchanged and is still valid.
The Quarterly Report as per 30 September 2009 is being released today, 12 November 2009, and can be downloaded from the company's website at http://www.phoenixsolar.com under the heading Investor Relations, Financial Reports.
This is an English translation of the German original. Only the German version is binding.
The content of this ad-hoc release is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall undertake no liability whatsoever for any loss in connection with this press release or the information made available. This also applies particularly to any eventual loss in connection with the shares of Phoenix Solar AG.
This document contains forward-looking statements on future developments which are based on managementís current assessment. Words such as "anticipate", "assume", "believe", "estimate", "expect", "intend", "can/could", "plan", "project", "forecast", "should", and similar terms are indicative of such forward-looking statements. Such statements are subject to certain risks and uncertainties which are mainly outside the sphere of influence of Phoenix Solar AG, but which have an impact on the business activities, the success, the business strategy and the results. These risks and factors of uncertainty include, for instance, climatic change, changes in the state subsidisation of photovoltaics, the introduction of competitor products or technologies of other companies, the development of the planned internationalisation of business activities, fierce competition as well as rapid technological change in the photovoltaic market. If one of these or other factors of uncertainty or risks should occur, or if the assumptions underlying the statements should prove incorrect, the actual results may diverge substantially from the results in these statements or implicit indications. Phoenix Solar AG does not have the intention nor will it undertake any obligation to realise forward-looking statements on an ongoing basis or at a later point in time as this is entirely dependent on circumstances prevailing on the day of their release.
In some countries, especially in the United States of America, the dissemination of this press release and the information contained therein may be restricted or prohibited under the law. This press release is therefore expressly not intended for persons resident in the United States of America or any other legal system under which such an offer or solicitation is not permissible, or for persons for whom such an offer or invitation would constitute a breach of the law.
Sulzemoos, 12 November 2009
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