EANS-News: Sunways AG: Botched energy turnaround affects consumers and solar companies (with photo)
16.06.2011 – 21:24
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Annual & Special Corporate Meetings/Company Information/Earnings Forecast Subtitle: · CEO Michael Wilhelm: peoples 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 CEO. 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 www.sunways.eu/en and www.presseportal.de/pm/57666/sunways_ag. 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 www.sunways.eu/en. Pictures with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/yuzZn89R Further inquiry note: Dr. Harald F. Schaefer Head of Corporate Communications & Investor Relations Tel.: +49 (0)7531 996 77-415 E-Mail: communications@sunways.de end of announcement euro adhoc -------------------------------------------------------------------------------- Pictures with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/yuzZn89R company: Sunways AG Macairestr. 3 - 5 D-78467 Konstanz phone: +49 (0)7531 99677 0 FAX: +49 (0)7531 99677 10 mail: info@sunways.de WWW: http://www.sunways.de 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