-Revenue decrease of 69% due to general weakness of market environment
-Ammer:“Difficult start to the year, but better grip on costs following reorganisation.”
-Margin improvement shows that restructuring programme is working
-Noticeable improvements in EBIT and net result
Hamburg, 14 May 2009 – At the Hamburg-based company Conergy AG the global financial market crisis, the market transition of the PV industry and a relatively long winter with heavy snow and rainfall have led to a revenue decrease of 69% to EUR 64.6m in the 1st quarter of 2009 (prior-year quarter: EUR 207.2m). Despite this decline, Conergy was able to increase its operating result (EBIT) by EUR 5m in the 1st quarter of 2009 to EUR -20.6m (previous year: EUR -25.6m).The net result after taxes was also significantly better in this period due to far more streamlined cost structures. It stood at EUR -27.9m compared with EUR -42.9m the previous year.
Conergy CEO Dieter Ammer says:“Like many of its competitors, Conergy had a difficult start to the new year.The result was a slump in revenue, which was disappointing for us, too.The good news, despite all this, is thatthe restructuring programme is working.We now have a better grip on our costs.In particular, the 30% cut in personnel expenses and the reduction of currency risks by withdrawing from a series of markets have had a positive impact on earnings.We have also reduced our restructuring-related legal and consulting costs.”
As such, Conergy was able to significantly improve its margins, despite the massive decrease in revenue.The gross margin, for example, grew considerably from 17.5% to 29.3% thanks to positive one-off effects.Whilst a gross margin of this size cannot be expected repeatedly over the following quarters,the general margin improvement shows that Conergy's restructuring programme is moving in the right direction.
Despite the difficult market situation, Conergy was able to record some operating successes since the beginning of 2009.At the beginning of May, one of the world's largest thin-film parks was inaugurated in the presence of Rhineland-Palatinate’s Minister for the Environment Margit Conrad.The operator of the park in the municipality of Föhren is the Trier Municipal Utility.Conergy was also able to win a major municipal project in Frankfurt (Oder).In California, Conergy constructed a photovoltaic system for a municipal drinking water treatment plant in the South Joaquin Irrigation District. It supplies the electricity used to treat around 150m litres of drinking water every day.
Ammer:“We have already seen a slight upturn in the market in March.In the second half of the year, at the latest, we expect business to pick up considerably.”Due to the global recession, Conergy does not expect to match last year's revenue.However, the Management Board anticipates more good growth opportunities for photovoltaics.
About Conergy
Since its founding in 1998, Hamburg-based Conergy AG has sold more than a gigawatt in renewable energy, making it one of the biggest European suppliers of solar energy and other renewable energies, and a world leader in solar system integration. Of the one gigawatt in renewable energies, Conergy has installed more than 400 megawatts in its major projects, Of the total one gigawatt, 200 megawatts falls to its wind energy park projects and 800 to its globally marketed solar modules. According to the German Solar Industry Association (BSW) this is just under a fifth of the entire installed photovoltaic output in Germany. Calculative one in ten modules worldwide was produced, sold or installed by Conergy.
Listed on the Frankfurt Stock Exchange since 2005, the group pursues a global growth strategy, The company now produces, installs and designs solar power systems and wind turbines in around 15 countries. The Conergy Group is represented with its own branches on four continents.
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