German Aleo Solar slips into net loss in Q1 2012 on revenue drop

May 14, 2012 - German photovoltaic (PV) technology producer Aleo Solar (ETR:AS1) posted today a net loss of EUR 8.3 million (USD 10.7m) for the first quarter of 2012 after a profit of EUR 800,000 a year earlier because of a decline in its revenue.

Revenue decreased by 14.6% to EUR 74.6 million mainly due to weak demand in southern Europe. Revenue generated in Germany rose slightly in annual terms based on strong demand. The firm’s international markets were, however, weak.

Aleo Solar booked a loss before interest and tax of EUR 8.2 million compared with earnings before interest and tax (EBIT) of EUR 2 million for the first three months of 2011.

The firm expects to improve its full-year sales volume and production based on close collaboration with specialist dealers and fitters. Business in Germany should remain moderate in the rest of 2012.

The firm also downgraded its revenue forecast as reductions in feed-in tariffs in key markets such as Italy and the resulting drop in solar module prices will be more significant than previously predicted. Aleo Solar now expects its 2012 revenue to be at least EUR 410 million. It had previously forecast a figure of EUR 440 million.

(EUR 1.0 = USD 1.288)

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