Solar Millennium cuts full-year EBIT target again

(ADPnews) - Oct 14, 2010 - German solar technology company Solar Millennium AG (ETR:S2M) yesterday lowered its outlook for earnings before interest and tax (EBIT) in the full fiscal 2010, ending October 31, for the second time over the last month.

Solar Millennium now expects to book break-even EBIT or even a slight loss before interest and tax (LBIT) and a revenue of EUR 150 million (USD 209.8m), instead of the originally projected EUR 350 million.

The company's initial forecast was for full-year EBIT of EUR 45 million, but in September Solar Millennium cut its EBIT target to EUR 30 million.

The adjustment in the company's forecast is a result of delays in the closing of the financing for the planned US power plants Blythe 1 and 2 in California, Solar Millennium said. The financial closure of the plants was originally planned to be registered prior to the balance sheet date on October 31, 2010, but it was postponed by the US Department of Energy (DoE) and other involved US authorities. Therefore, the corresponding sales and earnings from the project development and sales of stakes are expected to be generated in the next fiscal year, the company said.

(EUR 1.0 = USD 1.399)

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