Conergy AG

euro adhoc: Conergy AG
Earnings Forecast
Conergy AG launches programme focussing on profitable growth and efficiency

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9-month report

25.10.2007

Conergy AG launches programme focussing on profitable growth and efficiency

• Aim: Distinct improvement in Conergy AG´s profitability • Provisional figures for first nine months of 2007 well below expectations • Revenues and profit guidance for 2007 reduced

Hamburg, 25 October 2007 - The Board of Management of Conergy AG is launching a comprehensive company-wide programme focussing on profitable growth with the aim of achieving a sustainable improvement of the company´s efficiency and profitability.

The core elements of the programme are the strategic focus on profitable areas of business, a stronger alignment towards profitable growth in the photovoltaic sector together with an improvement in cost and business structures. Initial measures, starting with a comprehensive analysis of international activities, the business sectors and the corporate structure, are to be implemented during the current business year already.

Conergy´s Board of Management is initiating this programme against the background of an unsatisfying earnings performance in the financial year 2007.

On the basis of provisional figures for the first nine months of 2007, consolidated net income was EUR -8.8 million with revenues of EUR 641.1 million. The development of revenues and gross earnings in the third quarter was significantly influenced by delays in deliveries of modules. These delays resulted in a revenue loss of around EUR 130 million. Further variables influencing the development of the group profit were a rise in personnel costs and in other operating expenses. Working capital rose to around EUR 525 million at the end of the third quarter. The target ratio of 20 per cent of revenues by the end of the year is no longer regarded as achievable.

Up to the last moment there was the expectation that the quantity of modules lacking would be delivered as agreed in the fourth quarter. According to an up-to-date assessment, however, on-time delivery of a considerable quantity in the fourth quarter is not secured. Hence the Board of Management now anticipates revenue growth of at least 33 per cent to over EUR 1 billion.

Concerning the development of earnings for the business year 2007, the Board of Management expects operating earnings (EBIT) of EUR 40 million. This is set against expected risks in the region of EUR 30 to 50 million. The current expectation is therefore a corresponding net loss.

This amended guidance is based on an up-to-date assessment of potential opportunities and risks. Operating earnings will be affected particularly by the anticipated negative influence of delays in deliveries as well as by difficult business conditions in the bio-energy sector.

The expected risks of 30 to 50 million Euros concern mainly risks associated with the progress of major projects, risks from currency hedging transactions and the expected impact of writedowns of inventories and receivables.

The sales and earnings forecast for the 2008 business year is expected to be updated after the end of the 2007 business year.

Preliminary figures for the third quarter and the first nine months 2007 (in EURm): Q3 2007

Revenues: 223.0 Gross profit: 53.9 Personnel costs: -31.1

Other operating income/ other own work capitalized: 8.5 Other operating expenses: -35.6 EBITDA: -4.4 EBIT: -8.9 Financial result: -4.1 Income tax: 2.8 Consolidated net income: -10.3

Q1-3 2007 Revenues: 641.1 Gross profit: 144.8 Personnel costs: -82.1 Other operating income/Other own work capitalized: 20.7 Other operating expenses: -76.3 EBITDA: 6.7 EBIT: -1.4 Financial result: -9.3 Income tax: 2.0 Consolidated net income: -8.8

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ots Originaltext: Conergy AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Thorsten Vespermann
Tel.: +49 (0)40 27142-1631
Email: t.vespermann@conergy.de

Branche: Energy
ISIN:      DE0006040025
WKN:        604002
Index:    TecDAX, Technologie All Share, CDAX, HDAX, Prime All Share,
              Midcap Market Index
Börsen:  Börse Frankfurt / official dealing/prime standard
              Börse Berlin / free trade
              Börse Hamburg / free trade
              Börse Düsseldorf / free trade
              Börse Hannover / free trade



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