German Conergy expects end of solar boom in 2011

(ADPnews) - Oct 5, 2010 - German solar power group Conergy (ETR:CGY) projects that the current solar boom in Germany will not continue in 2011 and the next year will be weaker than the current period, CEO Dieter Ammer said today at the annual general meeting.

The company's expectations are based on the reduction in feed-in tariffs for solar energy, which will cause a decline in newly installed capacity in the country to 4 GW per year. According to Conergy's estimates Germany will add a record 7 GW of newly developed facilities in 2010.

However, further growth in revenue and operating profit may be booked in 2011 thanks to the strong positioning of Conergy outside Germany, Ammer said. The company's international business currently contributes around half of its total revenue.

According to the CEO, the solar sector will fare well again in 2013 at the latest.

The company also affirmed its forecast for returning to profitability in 2010 and booking full-year earnings before interest, tax, deprecation and amortisation (EBITDA) of between EUR 30 million (USD 41.3m) and EUR 40 million.

(EUR 1.0 = USD 1.377)

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