Phoenix Solar net profit more than doubles in Q3 2010

(ADPnews) - Nov 10, 2010 - German photovoltaic (PV) company Phoenix Solar (ETR:PS4) said today its third-quarter net profit doubled to EUR 2.3 million (USD 3.2m) from EUR 1 million for the same period last year.

The main event determining the third quarter of the current financial year was the unscheduled reduction of between 8% and 13% in the feed-in tariffs for photovoltaic electricity in Germany on July 1, 2010, the company said and added that domestic demand declined during the summer as it has been expecting.

Operating profit went up to EUR 4.3 million from EUR 3 million.

Revenue grew 6.2% on the year to EUR 95.3 million as power plants segment revenue tripled to EUR 41.5 million while components and systems division revenue fell 29.4% to EUR 53.8 million. International business accounted for 55.5% of the total revenue, compared with 7.6% a year ago, reflecting the company's focus on expansion abroad.

Solar module sales rose 20% to 47 MWp, despite the decline in demand.

Order backlog as at September 30 stood at EUR 271.2 million, rising 65.7% on the year.

Phoenix Solar expects robust fourth-quarter results, but below its second-quarter performance, on the back of rising demand seen since September.

(EUR 1.0 = USD 1.376)

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