AEG Power Solutions EBITDA slumps 78% Y/Y in Q2 2012

(SeeNews) – Aug 14, 2012 - AEG Power Solutions booked a 77.5% annual drop in earnings before interest, tax, depreciation and amortisation (EBITDA) to EUR 4.8 million (USD 5.9m) for the second quarter of 2012.

The company, which is part of Luxembourg-based firm 3W POWER SA (ETR:3W9), explained the decline with the tough market, the weak demand for polysilicon and the strong prior-year results of the power controller (POC) business.

The EBITDA margin shrank to 4.9% from 20% in the second quarter of 2011. The company projected a double-digit EBITDA margin for its Renewable Energy Solutions (RES) division and positive EBITDA margin for its Energy Efficiency Solutions (EES) division for the second half of 2012.

Second-quarter revenue went down by 8% on the year to EUR 98.2 million.

Order intake dropped by 31.7% in annual terms to EUR 87 million.

Although AEG assesses the global market situation as problematic, it expects growth in its solar power business in the second half of this year. In the first six months, the company inked a solar deal for the installation of at least 170 MW by the end of 2013. Furthermore, it agreed the sale of solar plants in Puglia, Italy for EUR 24.3 million including debts.

(EUR 1.00 = USD 1.237)

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