German Centrotec cuts full-year EBIT forecast due to one-offs

Nov 7, 2011 - German solar thermal systems and energy-saving devices supplier Centrotec Sustainable (ETR:CEV) today downgraded its full-year forecast for earnings before interest and tax (EBIT) due to write downs and restructuring costs.

EBIT is now seen 25% to 35% below the prior-year figure of EUR 36.2 million (USD 49.6m), while earnings per share (EPS) are expected to be negative. Centrotec's previous forecast was for EPS of between EUR 1.35 and EUR 1.45.

In addition, the company now projects its full-year revenue to stand at the lower end of the EUR 520 million to EUR 535 million forecast, after revenue of EUR 480 million in 2010.

Against the background of uncertainty on the photovoltaic market, Centrotec's management projected that the company will book an impairment of around EUR 15 million on the valuation of its 26 % interest in Centrosolar Group AG.

In addition, its business for integrated energy roof systems for photovoltaics and solar thermal is to be discontinued and is available for sale. Furthermore, minor-scale non-core activities that are not part of Centrotec's core business such as the Swiss spinal implants business will also to be discontinued, causing impairments of EUR 2 million. Overall, the non-recurring write-downs resulting mainly from the discontinuation of PV activities, that affect the company's EBIT amount to about EUR 9 million, the company added.

Centrotec will release its financial figures for the third quarter on November 10.

(EUR 1.0 = USD 1.370)

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