sunways AG

EANS-News: Sunways closes second quarter 2011 with breakeven earnings after taxes

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Financial Figures/Balance Sheet/Earnings Forecast/6-month report

Subtitle: · Solar module sales volumes at new high
· Slight recovery in demand, mainly in foreign markets
· Operating result significantly affected by strong price pressures

Konstanz (euro adhoc) - 11 August 2011 - Sunways AG, one of the leading solar
technology providers (SWW:GR, SWWG.DE, ISIN DE0007332207), closed the second
quarter 2011 with earnings after taxes of EUR 0.2 million (Q2/2010: EUR 3.5
million). In a market environment that, due to reduced demand - primarily in
Germany - and supply-related massive pressure on prices for photovoltaic
components, was highly volatile, Sunways generated sales of EUR 38.7 million in
the second quarter. This corresponded to a 40.1 percent drop from the prior year
quarter (Q2/2010: EUR 64.6 million). The operating result (EBIT) of EUR -6.3
million also markedly declined against the comparable prior year quarter
(Q2/2010: EUR 5,0 million). Earnings after taxes in the past quarter were
influenced significantly by the second purchase price portion (earn-out) in the
amount of EUR 4.9 million relating to the sale of MHH Solartechnik GmbH.
Earnings per share in the quarter amounted to EUR 0.01 (Q2/2010: EUR 0.30).

Development of results in the first six months of 2011 was inter alia affected
by movements in market prices for wafers and solar cells during that period.
Compared to the purchase prices for wafers, which only declined significantly as
of the end of the second quarter 2011, selling prices achievable for solar cells
and solar modules have been under permanent pressure since the beginning of the
year. The unusually weak demand in spring 2011 and high inventory levels
resulted in massive price declines in the area of solar cells and solar modules
over the first two quarters 2011. The situation in Germany and in various
foreign markets was also aggravated by uncertainty on the part of investors and
consumers with respect to future subsidies for solar energy.

In the first half of 2011, Sunways generated consolidated sales of EUR 60.9
million, a decline by 44,1 percent against the prior year period (H1/2010: EUR
108.9 million). Together with the first quarter figures, the operating result
(EBIT) for the first six months amounted to EUR -9.8 million (H1/2010: EUR 9.7
million). After-tax earnings at EUR -2.5 million were also negative (H1/2010:
EUR 5.6 million).

Recovery in demand, mainly in foreign markets
In the second quarter 2011, Sunways AG posted international sales of EUR 19.4
million (Q2/2010: EUR 13.0 million) which were almost exclusively generated in
Europe.  About 70 percent of sales outside Germany related to Italy. The Italian
market markedly gained in dynamics after the decision on the future terms and
conditions of government subsidies. In the first half of 2011, international
sales grew by 61.0 percent to EUR 32.3 million, compared to EUR 20.1 million in
the comparable prior year period. This positive development was in particular
supported by the solar module segment.

Solar module sales volumes reached new high
Solar module sales volumes reached a new high in the second quarter 2011. Such
sales volumes increased by 5.6 megawatts peak against the comparable prior year
quarter to 21.7 megawatts peak. Due to the massive pressure on solar module
prices, selling prices fell by about 13 percent on average during the period
from March through June 2011 alone. The solar inverter business experienced a
recovery in the second quarter 2011, in terms of sales volumes as well as sales
revenues, but failed to reach the levels prevailing in the second quarter 2010.
Due to a modification of the business model, sales volumes and sales revenues in
the solar cell segment fell behind the figures of the prior year quarter. Under
the module production cooperation agreed with LDK Solar in late 2010, a rising
number of Sunways solar cells are being embedded in Sunways solar modules by
LDK. Therefore, external sales volumes in the solar cell segment declined during
the first two quarters of 2011.

Outlook for 2011
The weak demand for photovoltaic components and excess supply prevailing in the
first months of the year to some extent continued in the second quarter. Sunways
AG withdrew its sales prognosis for the full year 2011 when sales figures and
order inflow data were available in April. In view of the increasing market
volatility resulting from continuing financial and political uncertainties, the
still hesitant demand in Germany and the supply-related massive pressure on
market prices, the Management Board of Sunways AG no longer believes that a
reliable prognosis can be given with respect to sales and operating result
(EBIT) for the full year 2011. Against the background described above, we expect
to experience a more positive development in the remaining two quarters than in
the first half of the year.

"Enterprises like Sunways are particularly affected by the pressure on prices
for photovoltaic components since our value added is largely generated in
Germany. To improve our results, we have initiated numerous measures on the
sales and cost side which will be consistently pursued in the second half of the
year", said Michael Wilhelm, the Chairman of the Management Board of Sunways.

Major key figures Q2/2011

GroupSales: EUR 38.7 million (Q2/2010: EUR 64.6 million)
EBITDA: EUR -4.7 million (Q2/2010: EUR 6.6 million)
EBIT: EUR -6.3 million (Q2/2010: EUR 5.0 million)
Consolidated net income: EUR 0.2 million (Q2/2010: EUR 3.5 million)
Earnings per share: EUR 0.01 (Q2/2010: EUR 0.30)
Sales Germany: EUR 19.3 million (Q2/2010: EUR 51.6 million)
Sales rest of Europe: EUR 19.4 million (Q2/2010: EUR 7.2 million)
Number of staff (30 June 2011): 347 (30 June 2010: 318)

Solar cell segment
Sales: EUR 26.5 million (Q2/2010: EUR 31.1 million)
EBIT: EUR -2.1 million (Q2/2010: EUR 5.5 million)
Sales volume: 27.0 MWp (Q2/2010: 30.7 MWp)

Solar module segment 
Sales: EUR 29.1 million (Q2/2010: EUR 29.7 million)
EBIT: EUR -3.6 million (Q2/2010: EUR 0.7 million)
Sales volume: 21.7 MWp (Q2/2010: 16.1 MWp)

Solar inverter segment 
Sales: EUR 8.0 million (Q2/2010: EUR 9.8 million)
EBIT: EUR -0.4 million (Q2/2010: EUR 0.3 million)
Sales volume: 38.2 MWp (Q2/2010: 39.3 MWp)

Major key figures H1/2011

Sales: EUR 60.9 million (H1/2010: EUR 108.9 million)
EBITDA: EUR -6.5 million (H1/2010: EUR 12.8 million)
EBIT: EUR -9.8 million (H1/2010: EUR 9.7 million)
Consolidated net income: EUR -2.5 million (H1/2010: EUR 5.6 million)
Earnings per share: EUR -0.21 EUR (H1/2010: EUR 0.48 EUR)
Sales Germany: EUR 28.6 million (H1/2010: EUR 88.8 million)
Sales rest of Europe: EUR 32.3 million (H1/2010: EUR 14.3 million)

Solar cell segment
Sales: EUR 34.0 million (H1/2010: EUR 52.9 million)
EBIT: EUR -2.9 million (H1/2010: EUR 7.0 million)
Sales volume: 33.8 MWp (H1/2010: 48.5 MWp)

Solar module segment 
Sales: EUR 45.5 million (H1/2010: EUR 48.4 million)
EBIT: EUR -4.7 million (H1/2010: EUR 1.5 million)
Sales volume: 33.4 MWp (H1/2010: 26.1 MWp)

Solar inverter segment 
Sales: EUR 11.1 million (H1/2010: EUR 18.9 million)
EBIT: EUR -2.2 million (H1/2010: EUR 1.2 million)
Sales volume: 51.0 MWp (H1/2010: 77.0 MWp)

Financial calendar 2011
2011/11/14 - Interim report as of 30 September 2011 (Q3)

This press release is also available on and at

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

Further inquiry note:
Dr. Harald F. Schäfer
Leiter Unternehmenskommunikation & Investor Relations
Tel.: +49 (0)7531 996 77-415

end of announcement                               euro adhoc 

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

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