SAG Solarstrom posts losses for Q2, H1 2012 due to price drops, FiT cuts
Aug 9, 2012 - SAG Solarstrom AG (ETR:SAG) moved to a second-quarter consolidated net loss of EUR 1.1 million (USD 1.358m) from a EUR 511,000 profit a year ago, hit by price drops and regulatory changes.
The German solar power plant specialist saw its earnings before interest and tax (EBIT) shrink to EUR 869,000 from EUR 3.3 million in the second quarter of 2011, while sales almost halved to EUR 31.9 million from EUR 59 million.
The figures for the first six months of 2012 were weak as well: The company booked a consolidated net loss of EUR 5.3 million for the period, while a year ago it reported a profit of EUR 3 million. On an operating level, there was a loss before interest and tax of EUR 1.9 million at the end of June 2012 against earnings before interest and tax (EBIT) of EUR 8.1 million in the first half of 2011. Revenue shrank to EUR 53.2 million from EUR 137.9 million.
The company said the challenges it had to face since the beginning of this year were a lot. Huge price drops on the solar market as well as the German government's decision to reduce feed-in tariffs were a serious blow to SAG Solarstrom's performance. The debt crisis in the eurozone also took its toll.
Despite the troubles it had in the first half of this year, the company reiterated its goals to raise product sales above the 2011-level of 100 MWp and to post an operating profit for the full 2012.