Aug 12, 2014 - Dutch power electronics maker AEG Power Solutions (FWB:3W9) narrowed its second-quarter loss before interest, tax, depreciation and amortisation (LBITDA) by 11% on the year to EUR 9.2 million (USD 12.3m) as restructuring started to show results.
Adjusted for capital gains and restructuring costs, the loss amounted to EUR 5.4 million, AEG said in a statement on Monday. The power electronics maker, owned by Luxembourg-based holding company 3W Power (AMS:3WP), attributed the negative result to the lower revenue of its Renewable Energy Solutions (RES) division and provisions for renegotiated payment conditions with suppliers.
The RES unit, which makes power control systems for polysilicon and solar cell production, recorded a 46.6% revenue decline in the second quarter to EUR 9.4 million and order intake went down to EUR 9.9 million from EUR 15.7 million. The segment’s LBITDA narrowed to EUR 4.5 million from EUR 5.3 million.
AEG Power's group revenue in the reporting period inched down 3.5% in annual terms to EUR 52.7 million due to the “difficult market environment” in the solar business. The full-year result is now seen at EUR 190 million - 210 million, instead of EUR 220 million previously. Order intake in April-June suffered a 13.6% drop to EUR 54.4 million.
AEG Power is currently working on a restructuring programme that includes selling or closing of unprofitable and non-core assets. After layoffs and divestitures, the number of employees will be reduced to 1,000 by the end of 2014 from 1,500 a year earlier. The financial restructuring, approved by bondholders and shareholders, will lower the obligations of the group by more than EUR 50 million, the company added.
Costs were reduced by EUR 7.8 million in the first half but the company plans further steps in the next six months to cut central expenses and revamp its core business in order to “reach a base of activities where the company can sustainably and profitably compete.”
(EUR 1.0 = USD 1.337)
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