(ADPnews) - Dec 28, 2010 - German photovoltaic technology company Roth & Rau AG (ETR:R8R) said today it has to make an extraordinary write-off of EUR 12.5 million (USD 16.6m) as at December 31, 2010.
The write-off will be used as provision for possible losses in connection with a potential insolvency of US solar cells maker SpectraWatt Inc., a client of Roth & Rau.
SpectraWatt has surprisingly announced it will shut down its operations in the first quarter of 2011 due to business problems.
Given the high risk of an insolvency at the US company, Roth & Rau has decided to make provisions.
In view of the planned write-off the German firm will not be able to achieve its targets for 2010, it said today.
The executive board will soon announce a revised outlook for this year, Roth & Rau added.
According to the company's earlier guidance in full 2010, it expected sales of EUR 285 million and earnings before interest and tax (EBIT) in the range of EUR 9 million to EUR 9.5 million.
(EUR 1.0 = USD 1.324)
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