3W Power widens net loss to EUR 21.5m in Q2 2013

Aug 14, 2013 - Luxembourg-based 3W Power (AMS:3WP), the holding company of power electronic systems maker AEG Power Solutions, widened its net loss to EUR 21.5 million (USD 28.5m) in the second quarter from EUR 5.9 million a year earlier, due to a drop in sales and restructuring costs, the company said today.

Revenue plunged 41% to EUR 57.9 million following low order intake in the first quarter of 2013, the company noted, adding that the orders in the second quarter declined 23.9% year-on-year, but marked a 10% quarterly growth. Earnings before interest, tax, depreciation, and amortization (EBITDA) moved to a negative EUR 11.6 million from a positive EUR 4.8 million a year earlier, due to lower volumes in the solar and power controller segments and an increase in restructuring costs.

The power controller business continues to suffer from lack of investment in new polysilicon capacity in the market. The solar system segment has also been affected by uncertainties on subsidies regulations and increased competition, the company added.

Looking forward, 3W Power expects to achieve a slight revenue growth for its energy efficiency business, however, the power controller and solar orders and revenue are to remain below the previous year levels.

(EUR 1 = USD 1.32)

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