Press Release from Conergy AG (ISIN DE 00060 40025), May 16th 2007
Conergy doubles sales in first quarter to EUR 173 million
- Above average growth in international business continues
- EBIT slightly improved
- Board confirms 2007 sales and profit targets
- Solar panel production in Frankfurt (Oder) on target for summer start-up
Hamburg, Germany - May 16th 2007. Conergy (ISIN DE 00060 40025), supplier of renewable energy system components, achieved sales of EUR 173.1 million in the first quarter of 2007. This represents a rise of 101% compared to the same period last year (EUR 86.3 million). The strong growth in international business which already accounts for 49% of sales contributed significantly to this result. Conergy already markets its systems for the use of solar, wind and bio-energy in 25 countries, through its three key brands, which focus on the retail customer, wholesale and investors respectively. Sales of solar thermal, wind- and bio-energy products also rose significantly to 23.9% of total sales (2.5% in Q1 2006). When considering the manufacturing segment quarterly results, the seasonal nature of the business should be taken into account. Since the start of many large projects is scheduled for spring, revenues and earnings in the first quarter do not cover all of the cost of the preliminary work done on such projects. As announced earlier the solar projects that were deferred in December due to supply problems were booked in the first quarter and contributed EUR 37 million to sales. The wind energy projects, worth EUR 16 million, which were also deferred due to the supply situation, have been delivered but will not be booked as sales until connected to the grid in the second quarter.
Board confirms 2007 sales and profit targets
Thanks to the high, above-average order volume, sufficient supply contracts, and project progress according to plan, the board confirms the 2007 sales target of EUR 1.25 billion, together with a doubling of net income for the year to over EUR 60 million. The gross income margin in the first quarter of 2007 rose from 14 to 18%, compared with the same period last year. The loss before interest and tax (EBIT) was reduced by around EUR 2 million to EUR 6.1 million. This includes start-up costs of EUR 1.5 million for Conergy’s solar panel production unit in Frankfurt (Oder). The net loss amounted to EUR 4.9 million, around the same level as in the first quarter last year (EUR –4.5 million).
Conergy creates architecture for global growth
As of March 31st 2007, the Conergy Group employed 1844 staff worldwide (March 31st 2006: 873 staff) for the planning and implementation of rising project sales in the course of the year. Major projects are going according to plan. Preparations for the start of Conergy’s solar panel production in Frankfurt (Oder) in the summer of 2007 are also going according to plan. The necessary raw materials and components for more than 80% of the target volume of 50 MWp of Conergy’s own module production have been secured. Conergy expects to be able to reach production of 50 MWp solar modules as planned. Contractually assured purchasing contingents and Conergy’s own production capacity currently exceed the planned output of 217 MWp for 2007 by 40 MWp. Supply reductions by one current supplier have been overcompensated by two new suppliers.
Conergy expects positive operating cash flow for 2007
Payments owed from the 2006 end of year business, upcoming account settlement for major projects as well as measures taken to optimise project financing will lead to a reduction in receivables in the second quarter, and thus also to a improvement in working capital of at least EUR 70 million. Conergy expects that cash flow from operating activities will be positive for both the second quarter and the year as a whole. With an equity ratio of 39% Conergy is in a solid position to finance future growth. For the purposes of working capital and investment, several banks have made commitments for a syndicated loan of more than EUR 600 million.
50/50/08: Conergy’s growth philosophy up to 2008
In the first quarter of this year Conergy already almost achieved its target of generating more than half of its total turnover abroad. Regional energy needs differ and it is intended that sales outside the fast-growing Photovoltaic business should account for more than 50% of revenues. Fast-growing demand for solar thermal, wind and bio-energy products will play a significant part. Conergy has reacted consistently to these mega-trends with its range of products. The range of products offers intelligent system technologies to meet the rising worldwide demand for energy, in order to generate electricity, heating or cooling from different renewable energy resources.
Besides inverters for the conversion of solar direct current into alternating current conforming to the mains supply in all areas of use, Conergy will develop and produce solar energy panels in a fully integrated production unit in Frankfurt (Oder) from summer of 2007. In addition, Conergy produces collector panels for heating or cooling using sunlight, as well as heat exchange pumps that can be used in combination. Alongside these key high-tech solar technologies Conergy also manufactures small wind power units and patented mounting systems for renewable energy systems. Conergy, as one of the leaders in technology for the development of the most efficient comprehensive systems, is expanding its production lines, targeting the most lucrative areas of renewable energy systems technology. |