sunways AG

EANS-News: Sunways AG: Botched energy turnaround affects consumers and solar companies (with photo)

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Annual & Special Corporate Meetings/Company Information/Earnings Forecast

Subtitle: · CEO Michael Wilhelm: people’s trust was gambled away
· Despite a massive price decline, Sunways AG increased second quarter sales and
sales volumes against the first quarter 2011
· In view of an increasing market volatility, no reliable prognosis for 2011 is
possible at present 
· Shareholders approved all motions of the Management Board and Supervisory
Board at the general meeting

Konstanz (euro adhoc) - 16 June 2011 - "The Federal Government completely
botched the energy turnaround", said Michael Wilhelm, Chairman of the Management
Board of Sunways AG (SWW:GR, SWWG.DE, ISIN DE0007332207), at the company´s
annual general meeting held today in Singen/Hohentwiel. "Instead of increasingly
subsidizing renewable energies in Germany in a balanced manner, and thus in
particular solar energy as a decentralized form of energy, the government gave
absolute priority to network expansion - which is a severe mistake", explained
Wilhelm. Full network capacity utilization mainly benefits utility companies.
Furthermore, the disposal expenses relating to shut down nuclear power plants
have to be borne by taxpayers - not by the utility companies. "A lot of consumer
goodwill was thoughtlessly gambled away by reducing subsidies for private
consumption", declared the company´s CEO. "Obviously, politicians fail to
understand the importance of such subsidies to the development of sustainable
energy storage and management systems."

Against the background of growing consolidation pressures on the German
photocvoltaics industry, Wilhelm said:  "Although there are first signs that the
reduction of solar subsidies already announced for 1 July 2011 may not occur
after all, unfortunately only the word "solar phase-out" comes to mind when
looking at the massive PV subsidy cuts already implemented by the Federal
Government". According to Wilhelm, German manufacturers of solar components are
facing severe competitive disadvantages compared to local competitors as a
result of the politically motivated, steadily continuing investment incentive
policy in China.

Compared to the first quarter 2011, Sunways was able to improve its sales and
sales volumes in the second quarter. With respect to two out of three segments
of the company - Solar Modules and Solar Inverters - the Management Board is
optimistic that sales at the level of the prior year quarter can be achieved by
the end of the second quarter (as of 30 June 2011).  "In view of a massive price
decline in these two segments, this would constitute a strong performance which
will only be possible on the basis of a significant increase in sales volumes",
said Wilhelm. In the solar cell segment, sales in the second quarter 2011 are
expected to decrease against the corresponding prior year quarter. "This will,
however, be largely due to the modification of our business model, i.e. the
solar module production cooperation with LDK Solar, which will have a positive
impact on sales and earnings of Sunways AG in the medium term", explained the

Sunways AG anticipates that, due to the weak demand in the market and the
pressure on margins, earnings before taxes (EBIT) will record a loss in the
single-digit million range in the second quarter 2011. This loss is, however,
expected to be offset by the inflow of cash resulting from the second purchase
price portion for MHH Solartechnik (earn-out) reflected in after-tax earnings.
MHH Solartechnik was sold to BayWa AG in 2009. In view of steadily deteriorating
political and economic framework conditions, the Management Board is currently
of the opinion that no reliable prognosis can be given for the full fiscal year.

On the occasion of the annual general meeting, the shareholders approved all
motions submitted by the Management Board and Supervisory Board. The following
resolutions were passed:
· The financial statements and consolidated financial statements were approved.
· Retained earnings of EUR 17.8 million for the fiscal year 2010 were brought
forward to new account. 
· Conditional capital of up to EUR 4.357 million was cancelled. ·      
PricewaterhouseCoopers were appointed as auditors. 
· The actions of the Management Board and Supervisory Board of Sunways AG were
formally approved.

This press release and pictures are also available on and

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 2010, Sunways AG with about 340 employees realised sales of around EUR 220
million. The shares of Sunways AG are listed at the Frankfurt Stock Exchange
(SWW:GR, SWWG.DE, ISIN DE0007332207).
For further information, please visit

Pictures with Announcement:

Further inquiry note:
Dr. Harald F. Schaefer
Head of Corporate Communications & Investor Relations
Tel.: +49 (0)7531 996 77-415

end of announcement                               euro adhoc 

Pictures with Announcement:

company:     Sunways AG
             Macairestr.  3 - 5
             D-78467 Konstanz
phone:       +49 (0)7531 99677 0
FAX:         +49 (0)7531 99677 10
sector:      Alternative energy
ISIN:        DE0007332207
indexes:     CDAX, Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
             Hamburg, Stuttgart, Düsseldorf, München 
language: English

Weitere Meldungen: sunways AG

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