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EANS-News: Sunways AG
Sunways AG raises 2010 sales prognosis due to
continuously strong third quarter business
- Sales increased to 58.3 million (+48.0 %); the operating result (EBIT) amounted to 4.0 million - Historically best quarter for Sunways solar inverters - Consolidated sales of 215-225 million and continuously high profitability expected for 2010 -------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Earnings Forecast/quarterly report/9-month report Subtitle: - Sales increased to 58.3 million (+48.0 %); the operating result (EBIT) amounted to 4.0 million - Historically best quarter for Sunways solar inverters - Consolidated sales of 215-225 million and continuously high profitability expected for 2010 Konstanz (euro adhoc) - Konstanz, 12 November 2010 - In the third quarter, Sunways AG (FWB: SWW; ISIN DE0007332207) continued its profitable growth in the fiscal year 2010. Based on dynamic demand for the Company´s products, Sunways AG´s sales increased by 48 % against the third quarter 2009 to EUR 58.3 million (Q3/2009: EUR 39.4 million). Business activities in the Company´s European markets outside Germany were expanded significantly. All three product segments of Sunways AG (solar cells, solar modules, and solar inverters) contributed to this substantial growth in sales revenues and sales volume. Especially for Sunways solar inverters, the three months from July to September 2010 were the best quarter so far. The Group´s operating result (EBIT) rose markedly in the third quarter to EUR 4.0 million (Q3/2009: EUR -0.6 million). In the first nine months of the fiscal year 2010, the consolidated sales of Sunways AG rose by 36.3 % to EUR 167.2 million (9M/2009: EUR 122.7 million). Based on the good results of the first two quarters, EBIT reached an amount of EUR 13.7 million and thus exceeded the 2009 comparative figure by EUR 19.8 million (9M/2009: EUR -6.1 million). International business increasingly more important The international business of Sunways AG in the third quarter 2010 recorded a very successful development: with a sales contribution of EUR 16.9 million, the international business accounted for 29 % of total sales and thus increased sixfold compared to the prior year figure (Q3/2009: 2,8 million). This also corresponded to an increase by another 30 % against the good second quarter of the current year. Major international sales contributions of Sunways AG were generated in Italy and Spain. "The steady expansion of our European business activities outside Germany was apparent throughout the first nine months of 2010 as volumes grew steadily. We intend to consistently keep up this development to become more independent of the terms and conditions of subsidy programs in the individual countries," commented Michael Wilhelm, Chairman of the Management Board of Sunways AG. Compared to the first nine months of the prior year, international sales tripled to EUR 36.9 million (9M/2090: EUR 11.5 million). With higher consolidated sales posted in 2010, the percentage proportion of business in the European markets outside Germany grew from 8.4 % to 18,5 %. Important sales markets for Sunways products in addition to Italy and Spain were Greece, France, Liechtenstein, Austria and the Czech Republic. Solar cells: still the most important sales driver In the third quarter 2010, sales in the solar cell segment rose by 51 % to EUR 27.9 million (Q3/2009: EUR 18,5 million). This amount includes intracompany sales generated with the solar module segment in the amount of EUR 6.1 million (Q3/2009: EUR 0.0 million). Sales volumes doubled to 24.5 MWp (Q3/2009: 11.8 MWp). As selling prices for solar cells were lower than in the third quarter 2009 while prices of raw materials had increased, the segment EBIT in the third quarter 2010 amounted to EUR 2.1 million (Q3/2009: EUR 2.5 million). In the first nine months of the current year, solar cell sales amounted to EUR 80.8 million and thus exceeded the corresponding figure for the period from January through September 2009 by just under 10 % (9M/2009: EUR 73.7 million). The sales volume grew by 63 % to 73.0 MWp (9M/2009: 44.7 MWp). Thanks to the high operating result in the second quarter 2010, when a large contract manufacturing order was settled, the product segment´s EBIT in the first nine months of 2010 grew markedly to reach a new record level of EUR 9.1 million (9M/2009: EUR 2.5 million). Solar modules: focus on doubling sales volumes In the solar module segment, sales in the third quarter 2010 amounted to EUR 19.6 million and thus exceeded sales in the prior year quarter by 19 % (Q3/2009: EUR 16.4 million). The module sales volume rose markedly to 11.3 MWp (Q3/2009: 7.8 MWp). Despite the sales and sales volume growth in the product segment, EBIT only improved slightly to EUR -1.5 million (Q3/2009: EUR -2,4 million). This was mainly due to higher production costs resulting from an increase in transfer prices for solar cells and in particular to the still very high prices charged by our German module manufacturers for stringing solar cells. In the first three quarters 2010, solar module sales amounted to EUR 68.0 million and increased by 74 % against the prior year figure (9M/2009: EUR 39.0 million). Although the EBIT generated in the same period of EUR 0.0 million made no positive contribution to consolidated earnings, this figure constitutes a significant improvement against the prior year (9M/2009: EUR -5.1 million). The module sales volume in the first nine months of the current year rose by 125 % to 37.4 MWp (9M/2009: 16.6 MWp). Due to further improved delivery capacities, e.g. under the new module production contract with LDK Solar, Sunways AG is confident that the targeted duplication of sales volumes to approx. 50 MWp for the entire fiscal year 2010 will be achieved. Solar inverters: top performance in terms of sales, sales volumes and earnings At EUR 16.9 million, sales of the solar inverter segment in the third quarter 2010 increased to more than 3.5 times the amount reported in the prior year (Q3/2009: EUR 4.5 million). The sales volume grew from 18.4 MWp in the third quarter 2009 to 68.0 MWp in the past quarter. Sunways AG was able to largely satisfy the strong demand for solar inverters. In this context, a larger percentage portion of new models and increasingly also devices with higher capacities were sold. With an EBIT of EUR 3.4 million (Q3/2009: EUR -0.7 million), the past quarter was the most successful three-month period so far in the product segment´s history. Accumulated inverter sales in the first nine months of 2010 amounted to EUR 35.8 million (9M/2009: EUR 10.0 million) - a sales growth by 258 %. Sales volumes increased from 39.9 MWp in the first nine months of 2009 to 145.0 MWp in the corresponding 2010 period. EBIT for the first nine months of the current year amounted to EUR 4.6 million (9M/2009: EUR -3.5 million). Outlook for the entire fiscal year 2010: prognosis raised Following two unscheduled reductions of feed-in tariffs in Germany, Sunways AG again expects moderate pressures on the selling prices for PV system components in the fourth quarter. Moreover, Sunways anticipates a reduction of sales volumes against the preceding quarters of the current year in the high-margin inverter business. In view of the supply shortages in spring 2010, end customers placed orders that in some cases are currently being cancelled. On the procurement side, Sunways AG anticipates a currency and demand related increase in prices of raw materials (in particular wafers) but also expects that the inverter component supply situation will ease slowly and steadily. With respect to the module business, Sunways AG is confident that the projected duplication of the 2009 sales volume will be achieved. Sunways recently certified LKD Solar as an additional partner for the production of Sunways solar modules and, consequently, expects margins to improve palpably in the medium term due to lower stringing costs. Based on the positive business development in the third quarter in combination with increased volumes in the international business and the good development of the inverter segment, Sunways AG has made an upward adjustment to its sales prognosis for the fiscal year 2010: the Company expects sustained Group profitability with an EBIT margin of about 6 % and an increase in consolidated sales to EUR 215-225 million. Financial calendar 2011 17/02/2011 - Preliminary 2010 sales figures 31/03/2011 - Report for the fiscal year 2010 (FY 2010) 12/05/2011 - Interim Report as of 31 March 2011 (Q1) 11/08/2011 - Interim Report as of 30 June 2011 (Q2) 14/11/2011 - Interim Report as of 30 November 2011 (Q3) Q3/2010 key figures Group Sales: EUR 58.3 million (Q3/2009: EUR 39.4 million; + 48.0 %) EBITDA: EUR 5.6 million (Q3/2009: EUR 0.9 million) Depreciation and amortization: EUR 1.6 million (Q3/2009: EUR 1.5 million) EBIT: EUR 4.0 million (Q3/2009: EUR -0.6 million) Consolidated net income: EUR 2.7 million (Q3/2009: EUR 1.4 million) Earnings per share: EUR 0.24 (Q3/2009: EUR 0.12) Number of employees (30/09/2010): 333 (30/9/2009: 316) Solar cell segment Sales: EUR 27.9 million (Q3/2009: EUR 18.5 million; +50.8 %) EBIT: EUR 2.1 million (Q3/2009: EUR 2.5 million) Solar cell sales volume: 24.5 MWp (Q3/2009: 11.8 MWp) Solar module segment Sales: EUR 19.6 million (Q3/2009: EUR 16.4 million; +19.5 %) EBIT: EUR -1.5 million (Q3/2009: EUR -2.4 million) Solar module sales volume: 11.3 MWp (Q3/2009: 7.8 MWp) Solar inverter segment Sales: EUR 16.9 million (Q3/2009: EUR 4.5 million; +275.6 %) EBIT: EUR 3.4 million (Q3/2009: EUR -0.7 million) Solar inverter sales volume: 68.0 MWp (Q3/2009: 18.4 MWp) 9M/2010 key figures Group Sales: EUR 167.2 million (9M/2009: EUR 122.7 million; +36.3 %) EBITDA: EUR 18.4 million (9M/2009: EUR -2.0 million) Depreciation and amortization: EUR 4.7 million (9M/2009: EUR 4.1 million) EBIT: EUR 13.7 million (9M/2009: EUR -6.1 million) Consolidated net income: EUR 8.3 million (9M/2009: EUR -2.8 million) Earnings per share: EUR 0.72 (9M/2009: EUR -0.24) Solar cell segment Sales: EUR 80.8 million (9M/2009: EUR 73.7 million; +9.6 %) EBIT: EUR 9.1 million (9M/2009: EUR 2.5 million) Solar cell sales volume: 73.0 MWp (9M/2009: 44.7 MWp) Solar module segment Sales: EUR 68.0 million (9M/2009: EUR 39.0 million; +74.4 %) EBIT: EUR 0.0 million (9M/2009: EUR -5.1 million) Solar module sales volume: 37.4 MWp (9M/2009: 16.6 MWp) Solar inverter segment Sales: EUR 35.8 million (9M/2009: EUR 10.0 million; +258.0 %) EBIT: EUR 4.6 million (9M/2009: EUR -3.5 million) Solar inverter sales volume: 145.0 MWp (9M/2009: 39.9 MWp) This press release and pictures are also available on www.sunways.eu/en and on http://www.presseportal.de/suche.htx?q=sunways. Forward-looking statements This press release contains statements relating to the future business development of Sunways AG that are based on management assumptions and estimates made at the time of publication. Should the assumptions underlying the prognoses fail to be fulfilled, actual events may vary substantially from forward-looking statements. Uncertainties include changes in the political, legal, economic and business environment, exchange and interest rate fluctuations as well as the behaviour of competitors and other market participants. Sunways does not intend and is not under any obligation to update forward-looking statements on an ongoing basis as these are exclusively based on the circumstances prevailing as of the date of publication. About Sunways Sunways AG, Konstanz/Germany, stands for consistent use of solar energy to secure long-term energy supply of man in an efficient and sustainable manner. Sunways offers technological competence, performance and highest quality - from single components to complete solar systems.Since its foundation in 1993, Sunways AG evolved into a technology leader in the photovoltaics industry serving international markets. With silicon-based solar cells, inverters, solar modules and solar systems, the company offers all components required for high-yield photovoltaic power generation. With photovoltaic solutions tailored to customers´ needs (transparent and coloured solar cells, building- integrated photovoltaic installations), Sunways turns exceptional ideas into reality. Sunways Production GmbH in Arnstadt/Germany is a subsidiary of Sunways AG; in addition, the group has own branch offices in Barcelone/Spain and Bologna/Italy. In 2009, Sunways AG with about 320 employees realised sales of about EUR 180 million.The shares of Sunways AG are listed at the Frankfurt Stock Exchange (SWW, ISIN DE0007332207). For further information, please visit www.sunways.eu/en. end of announcement euro adhoc -------------------------------------------------------------------------------- Further inquiry note: Dr. Harald F. Schaefer Head of Corporate Communications & Investor Relations Tel.: +49 (0)7531 996 77-415 E-Mail: email@example.com Branche: Alternative energy ISIN: DE0007332207 WKN: 733220 Index: CDAX, Prime All Share, Technology All Share Börsen: Frankfurt / regulated dealing/prime standard Berlin / free trade Hamburg / free trade Stuttgart / free trade Düsseldorf / free trade München / free trade