3W Power swings to EUR 11.6m loss in Q3 2013

Nov 20, 2013 - 3W Power (AMS:3WP) said on Tuesday its loss before interest, taxes, depreciation, and amortisation (LBITDA) amounted to EUR 11.6 million (USD 15.7m) in the third quarter of 2013, compared with a profit of EUR 8.4 million in the prior-year period, according to preliminary figures.

The Luxembourg-based holding company, owner of power electronic systems maker AEG Power Solutions BV, said that the negative earnings are due to the decrease in sales as well as restructuring costs of EUR 3.3 million.

Revenue in the period July-September dropped by 36.4% to EUR 53.9 million due to low order intake in the second quarter. Order intake in the third quarter declined by 6.8% year-on-year to EUR 58 million.

Due to insufficient liquidity, the company is currently reviewing the need for adjustments to its capital structure. 3W Power will meet with its bondholders on November 25 to discuss a possible restructuring of a EUR 100 million bond.

In addition, 3W Power considers selling non-core assets and is currently in talks with banks for the provision of additional financing.

For 2013, the company expects to post an LBITDA and sales to drop below EUR 285 million.

(EUR 1.0 = USD 1.354)

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