- Consistent new focus on the fast-growing solar energy business
- Measures introduced to strengthen sustainable profitability
- Revenues of 1 billion EUR will probably not be achieved
- EBIT expected to lie between -150 and -200 million. EUR in 2007
The Board of Management of Conergy AG will reposition the group as a focused supplier in the solar energy business and will strengthen the profitability of the company on a sustainable basis.
"The new Board of Management has decided on a significant repositioning, which will put Conergy back on track for success in the near future. Conergy will focus on its profitable activities, will be structured more efficiently and will make one-time writedowns and changes to its accounting policies, in order to put its accounting on a more conservative footing" said Dieter Ammer, the CEO of Conergy AG. "We believe that with these measures we have put the company on a strong footing for the coming years."
Accordingly, the Board of Management has decided on the following measures at yesterday’s Board meeting:
1. Strategic positioning of Conergy AG as an integrated supplier in solar energy business and discontinuation of non-core activities in the areas of bioenergy and solar thermics (including heat pumps).
- As a supplier of solar systems and solutions, Conergy will in future focus on the high-growth, profitable solar energy business.
- Conergy will discontinue the business activities bioenergy and solar thermics (including heat pumps) and will prepare a sale of these operations. This concerns around 100 employees.
2. A holding company structure with three segments, which will operate independently, will be formed on 1 January 2008.
- The holding company will limit itself to a few central functions and will be led by a Board comprised of three members. The Board members will be Dieter Ammer (CEO), Pepyn Dinandt (COO) and Dr. Jörg Spiekerkötter (CFO).
- Beginning on 1st January 2008, Conergy will operate with three segments: COMPONENTS, SALES & SYSTEMS and PROJECTS, each with their own profit and loss account responsibility. The segment SALES & SYSTEMS will be managed by Philip von Schmeling and the segment PROJECTS will be managed by Nikolaus Krane. The segment COMPONENTS will be managed by Pepyn Dinandt on an interim basis.
- The business segment COMPONENTS will in future comprise all manufacturing, including the new, fully integrated solar energy plant in Frankfurt/Oder. The segment SALES & SYSTEMS will comprise the operations of Conergy and SunTechnics. The segment PROJECTS will comprise the successful EPURON business.
3. Improvement of cost structures in order to strengthen profitability on a sustainable basis.
- Measures to cut costs have been introduced and will be implemented immediately. This includes adjustments to staffing levels. The Board expects that the number of employees will be reduced by around 500 globally.
In yesterday’s meeting, the new Board of Management agreed on a revised earnings forecast for the financial year 2007. The Board now expects an EBIT (Earnings before interest and taxes) in a range of -150 to -200 million EUR.
This revised forecast takes into account a significant deterioration in the operating result as well as the following major additional one-time items:
- A change in the accounting policy for large projects (POC)
- Adjustments in the book values of certain assets
- Costs associated with the planned restructuring measures
By far the major part of these one-time items will not affect liquidity.
The Board of Management |