German Solarworld slips to loss in Q3 2011

Nov 14, 2011 - German photovoltaic (PV) group Solarworld (ETR:SWV) said today that despite an annual increase in shipments, it turned to a loss of EUR 9 million (USD 12.4m) in the third quarter of 2011.

A year earlier, the company made a profit of EUR 19.9 million.

Earnings before interest and tax (EBIT) more than halved to EUR 20.6 million from EUR 49.8 million in the third quarter of 2010. The EBIT-margin shrank to 8.7% from 14.6%.

From July through September, demand in the entire market was once again weaker than expected, CEO Frank Asbeck said. In addition, Solarworld was negatively affected by continuing price declines caused by the strong surplus supply mainly from state-subsidised low-price providers, the CEO added.

The company's revenue in the third quarter fell to EUR 237.8 million from EUR 342.1 million in the third quarter of 2010. However, Solarworld's total shipments of solar wafers and modules went slightly up to 195 MW from 191 MW in the prior-year period.

In the light of the negative price framework, in 2011 the solar company will be unable to reach the EUR 1.3 billion revenue figures booked for 2010, Solarworld added.

(EUR 1.0 = USD 1.375)

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