Return to a positive operating result for the first time in fourth quarter
-EBITDA loss reduced by over 93%, despite decline in revenue in 2009
-Solar factory profitable for the first time.Strong demand for Conergy modules
-Conergy CEO Dieter Ammer:“We're planning to get back in the black in 2010 – but Germany has to do its bit”
Hamburg, 18 February 2010 - Two years of intensive restructuring measures at Conergy AG are bearing fruit in the form of a significantly improved operating result in 2009.Despite the financial and economic crisis and sharp decline in demand from the Spanish market, the Hamburg company generated earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR -10.8m in 2009, compared with EUR -147.3m the previous year.This represents an improvement of 93%.In the fourth quarter of 2009, with a revenue of EUR 244.4m, Conergy recorded positive EBITDA again for the first time, generating EUR 36.8m (prior-year quarter: EUR -130.3m).This figure includes revalued receivables of EUR 34.2m against MEMC which Conergy had written down as prepayments in its 2008 financial statements as a precautionary measure.
This improvement reflects the massive cost-cutting measures and considerably more efficient organisation that have been put in place at the company.The improvement was achieved despite the fact that last year's slump in sales in the solar market also left its mark on Conergy. At EUR 600.9m, revenue was down 38% from the previous year (EUR 975.3m).
“In 2009 we put our focus on profitable revenues whilst paying close attention to our material and personnel costs.Although we were not able to compensate entirely for the tough market environment with these measures, we are now a considerably more efficient and streamlined company.Our figures show thatthe trend is moving in the right direction.We are therefore aiming to get back into the black with our operating result in 2010 – although the future development of the market in Germany will, of course, continue to play an important role,” said Dieter Ammer, CEO of Conergy AG.
Conergy was also able to make a substantial improvement of 80% to its earnings before interest and taxes (EBIT), which stood at EUR -36.8m in 2009 (previous year: EUR -181.8m).The reversal of deferred tax receivables led to a one-off burden of EUR 22m on the annual result.Therefore, the result from continued operations for the whole of 2009 amounts to EUR -81.1m (previous year: EUR -225.7m).
Another factor which contributed to the improvement in 2009 was the strong demand for Conergy premium modules from Frankfurt (Oder).This had a positive effect on the company's margin, and therefore on the result.The factory was able to manufacture with all lines in operation for the first time and thus achieve the expected cost reductions.Consequently, in the fourth quarter Conergy was able to operate the factory profitably for the first time.As a systems producer, Conergy will continue to focus on using products it has manufactured itself, enabling the company to improve its margins further still.“The agreement that we have reached with our wafer supplier MEMC is an important prerequisite for us in order to be able to keep manufacturing competitively in Germany.As it continues to operate at high capacity and reduce costs locally, the factory will become – just like our inverter and mount production – a strategically important component of our company,” Ammer added.
About Conergy
Hamburg-based Conergy AG is one of the leading firms in solar system integration, with around 1,700 employees in 14 different countries, spread over four continents.Conergy develops and produces crystalline solar modules, power inverters and mounts at three locations in Germany.In this way, Conergy is able to offer its customers the levels of quality associated with German technology, as well as its own complete range of components for solar equipment.In addition, Conergy develops, finances and installs solar equipment as well as parks and works on large-scale renewable energy projects that fall outside its core sector of photovoltaics.
Since its foundation in 1999, Conergy has converted over 1.25 gigawatts of renewable energy, almost 1 gigawatt of which has come from solar energy.Conergy has been listed on the Frankfurt stock exchange since 2005 (ISIN: DE 00060 40025) and has been pursuing a growth strategy in the alternative energy markets of the future. |