German Singulus to cut 50 jobs in solar business due to shifted focus - report

(SeeNews) – Nov 1, 2012 - German machinery maker Singulus (ETR:SNG) plans to cut 50 jobs at its Fuerstenfeldbruck site as a result of its changed focus towards the thin-film sector, German Photovoltatik magazin reported yesterday citing the company’s spokesman.

Singulus Stangl Solar, a wholly-owned subsidiary of Singulus, will release around 40% of its 120 workforce by the end of 2012.

The background of the decision is a change in the company’s strategy due to its recent poor performance. Singulus reported EUR 10.9 million (USD 14.1m) loss excluding special charges in the first three quarters of 2012. Revenue decreased to EUR 83.5 million from EUR 121 million in the same period in 2011.

The company cut its forecast for 2012 and now expects to book a loss, including one-time write-downs of EUR 43.3 million (USD 56m), of between EUR 54 million and EUR 56 million.

As a result, the company plans to shut down its wet chemical sector, which would affect most strongly Singulus Solar. Instead of solar energy, Singulus now rather plans to focus on the expansion of its CIS/CIGS thin-film sector, where it received several large orders including from German solar module maker Avancis and South Korean carmaker Hyundai (KRX:005380).

As part of its new direction, Singulus is also in talks for the takeover of two or three companies. The company will disclose more information about these acquisitions later.

(EUR 1.00 = USD 1.29)

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