German Sunways predicts return to op profit for 2014

Aug 31, 2012 - German solar firm Sunways AG (ETR:SWW) said yesterday at its annual general meeting it sees a chance to return to operating profit as of 2014 based on the sales and cost synergies resulting from the closer co-operation with Chinese peer LDK Solar Co Ltd (NYSE:LDK).

The Chinese group is now the new majority shareholder of the German group after the public takeover by its subsidiary LDK Solar Germany Holding GmbH.

Sunways CEO Michael Wilhelm said yesterday the partnership with the Chinese company has strongly improved the outlook for the firm, which is currently facing individual and industry-related structural challenges. The two companies aim to become two of the three largest producers of solar inverters in the world.

Wilhelm added that in the medium term growth in the field of photovoltaics (PV) is expected mainly from China.

The CEO went on to say that 2011 was very difficult for Sunways, whose revenue then dropped by some 50% on the year to EUR 116.2 million (USD 145.3m) due to lower demand in its former core markets and the fall in the solar modules prices.

The group’s management board is quite cautious in its forecast for the full 2012. At present it is unable to disclose any precise targets because of the political and economic environment, but Sunways aims to stabilise its revenue and sales for the year.

(EUR 1.0 = USD 1.25)

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