November 12, 2008
Berlin, Germany: SOLON AG Presents Third Quarter 2008 Results
SOLON AG today presented its interim report for the nine-month period ended September 30, 2008. Total Group revenues rose by 91% to EUR 637.0 million in the first nine months of 2008 (prior-year period: EUR 333.9 million).
Total operating performance increased by 81% to EUR 667.3 million (prior year period: EUR 367.7 million). The SOLON Group produced solar modules with a total capacity of 128 MWp in the first nine months of 2008.
The System Technology segment contributed a share of 56% of Group revenues, unchanged from the first half of 2008. The Components segment contributed 44% of Group revenues. The percentage of revenues generated outside of Germany was unchanged at more than 80%, primarily in response to robust demand for solar technology in Spain and Italy.
Earnings before interest, tax, depreciation, and amortization (EBITDA) increased to EUR 58.5 million (prior-year period: EUR 32.7 million). Earnings before interest and tax (EBIT) rose 84% to EUR 49.4 million (prior-year period: EUR 26.9 million). Earnings as a percentage of Group revenues were 9.2% (EBITDA) and 7.8% (EBIT).
Net income after minority interests amounted to EUR 27.3 million, rising 78% compared to the net income after minority interests of the first nine months of 2007, which had been adjusted for one-time effects from the sale of strategic equity investments (prior-year period adjusted: EUR 15.3 million). Earnings per share rose to EUR 2.18 (prior-year period adjusted: EUR 1.59).
The sustained robust growth of the SOLON Group is also reflected in the rising number of employees. As of September 30, 2008, SOLON employed 891 persons, a 37% increase from September 30, 2007. Compared to the first six months of 2008, the ratio of personnel expenses to total operating performance increased slightly to 4.2%.
The expansion of Group-wide production capacities in Germany, Italy, and the USA to 500 MWp by year-end has been nearly completed. Recently, the new production facility in Tucson, Arizona was dedicated.
The global financial crisis and the ensuing risks to the global economy have made it significantly more difficult to forecast the development of the global photovoltaics market. It is already possible to see the initial impact on the investment climate and the demand for photovoltaic products. Based on these changed overall economic conditions, the Company's management has, as a precaution, adjusted the forecast for 2008 as a whole and the expectations for 2009 as follows:
For 2008, revenues are now expected to range between EUR 800 million and EUR 850 million with an EBIT margin of more than 7%. This reflects an expected increase in revenue compared to the previous year of at least 60%. SOLON AG will, therefore, close the 2008 fiscal year continuing to be one of the fastest growing publicly traded solar companies in Germany.
For 2009, in light of the increasingly difficult market environment the Company now expects revenues to rise to more than EUR 1 billion with a target EBIT margin exceeding 6%. |
