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Conergy AG

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

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
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
end of announcement                               euro adhoc 25.10.2007 21:45:58

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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Plus de actualités: Conergy AG