Restructuring makes good progress
·Sales up 87% to EUR 582 million in first half 2008, compared to same period in the previous year. Sales in second quarter 2008 double to EUR 379 million
·EBIT in Q2 improves from EUR -29 million to EUR -7 million. H1 improves from EUR -48 million to EUR -33 million.
·CEO Ammer: ”The operational progress confirms that Conergy is on the right path forwards.“
Hamburg, 8 August 2008 – Conergy AG, the Hamburg-based solar energy company, has significantly grown its business in the first half of 2008, which saw significant restructuring. Conergy raised its half- year sales by 87 percent to EUR 582 million, compared with the same period in the previous year, thanks to large-scale projects in Spain and South Korea, as well as sales increases in other international markets. In the second quarter 2008, Conergy achieved sales of EUR 379 million: double the figure seen in the second quarter 2007.
A positive EBITDA of EUR 1 million; EBITDA (adjusted) at EUR 10 million
EBITDA, adjusted for one-off and extraordinary items, was positive for the first time since the start of the company’s restructuring at EUR 10 million at the end of June 2008. At the same time, Conergy has clearly reduced its loss on an EBIT basis in the first half of the year 2008 (to EUR -33 million from EUR -48 million in H1 2007), as well as in the second quarter 2008 (to EUR -7 million from EUR -29 million in Q2 2007). These results are primarily due to the effective business development in the second quarter and the reduction of labour and materials costs.
Net profit was affected, above all, by high interest charges from the financial results of EUR -27 million (EUR -5 million in the previous year). Furthermore, the first half of 2007 was positively influenced by active tax deferrals of approximately EUR 20 million more than in the first half of 2008. The effect of both the interest and tax elements resulted in Conergy posting a half-year loss after tax of EUR -59 million (EUR -32 million in the previous year) for its ongoing operations, once one-off and extraordinary items were taken into account.
“We have made good progress in our new positioning and also – which I believe to be just as important -have achieved remarkable market success“, said Dieter Ammer, who was appointed CEO on 1 August. “Our products in system integration and project development are strong. The growth and profit development confirm that Conergy is on the right path. After nine months of restructuring, we are considerably more focused and dynamic. With the upcoming capital increase we plan to significantly reduce the high interest burden and replenish our means to further grow in 2009 and 2010.“
Large-scale projects ensure sales growth
The reassuring rise in sales was primarily due to the project business division (EPURON). In particular, large-scale photovoltaic projects in Spain and South Korea have been realised or sold: they could not be accounted for due to postponements in previous quarters. Sales from EPURON rose in the first half of 2008 by EUR 160 million to EUR 221 million, compared with EUR 61 million in the first half of 2007. The large-scale project “El Calaverón” contributed a substantial EUR 138 million to this sales increase.
The division Conergy PV raised its first-half sales by 44% to EUR 361 million (EUR 250 million in the previous year). Fundamental to this sales increase were good orders in Spain and also the completion of the 20 MW solar park in South Korea, currently the largest in Asia. The operating business in general and the successful realisation of the large-scale projects “El Calaverón“ and “SinAn“ led to a reduction in working capital and generated a positive cash flow in the second quarter.
In the first half of the year, the management board actively strengthened Conergy’s focus on the “Downstream Business“. In the future, Conergy will concentrate on its traditional strengths and will expand the sales of solar products and systems to a range of lucrative markets. Ammer said: “With the clear focus on the value-added areas in the Downstream division, we are preparing ourselves in the best way possible for the expected market development.“ As a result of the agreement in July this year to halve the contract agreed in October 2007 with MEMC for the delivery of wafers, Conergy has taken an important step. As a result, Conergy has increased its operational and financial room for manoeuvre to implement its new company strategy. Another important step was taken to adequately supply the module plant at Frankfurt (Oder). The first deliveries are due to take place in the third quarter of 2008. The first test deliveries are already being turned into modules.
Conergy has begun further significant progress to becoming a focused provider in the solar energy market with the sales of the solar thermal businesses in Belgium and the Netherlands, the solar thermal production in Austria and the solar thermal business of SunTechnics. The company will continue this route with the additional disposals of non-strategic businesses, including the wind plant production segment.
About Conergy
Conergy AG is one of the leading solar enterprises in Europe and with over 70,000 solar systems installed also a global market leader in the field of solar system integration. Listed since 2005 on the Frankfurt Stock Exchange, the group pursues a global growth strategy: it produces, installs and plans solar systems for its customers in more than 20 countries. The Conergy Group is represented by branch offices on four continents.
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Alexander Leinhos
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Conergy AG
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