MEMC turns to USD-37m profit in Q3 2012

Nov 7, 2012 - US silicon wafer maker MEMC Electronic Materials Inc (NYSE:WFR) today said it had turned to a third-quarter net profit of USD 37 million (EUR 28.8m) from a net loss of USD 94.4 million a year ago.

Adjusted net profit came in at USD 70.5 million versus a loss of USD 50.3 million.

The net results includes a USD-37.1-million gain on the termination of a supply deal with German solar equipment maker Conergy AG (ETR:CGYK) and USD 58.3 million of favourable restructuring adjustments relating to a contract settlement with German industrial conglomerate Evonik. The year-ago figure included a USD-56.4-million loss due to goodwill impairments.

Gross margin for the reporting period improved to 14.4% from 11.4%

Revenue increased to USD 601.6 million from USD 516.2 million. Solar energy segment revenue rose 46% to USD 361.3 million thanks to increased sales of solar projects and solar modules, compared to the year-ago period, although solar wafer prices halved on the year. Semiconductor materials segment sales fell 10% on the year to USD 240.3 million due to lower prices.

Solar projects pipeline totalled 2.9 GW, of which 117 MW under construction as of September 30, the company said.

MEMC expects its fourth-quarter semiconductor materials revenue do decline 4% to 11% on the quarter and its solar energy systems adjusted sales volume to be in the range of 90 MW to 120 MW.

(USD 1 = EUR 0.778)

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