DGAP-News: SolarWorld AG increases foreign share in 2011 and readies itself for more international competition
ID: 127380
(firmenpresse) - DGAP-News: SolarWorld AG / Key word(s): Miscellaneous
SolarWorld AG increases foreign share in 2011 and readies itself for
more international competition
22.03.2012 / 11:20
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March 22, 2012
Corporate News SolarWorld AG
(Securities Code No.: WKN 510 840)
(International Securities Identification Number: ISIN DE0005108401)
SolarWorld AG increases foreign share in 2011 and readies itself for more
international competition
Today, the consolidated financial statements of SolarWorld AG were
published for fiscal year 2011 and substantiated the preliminary figures
previously announced. Business in modules and components rose 14 percent,
whereas external shipments for wafers dropped. The foreign sales quota rose
to 68 percent in 2011, compared with 59 percent in 2010, in line with the
company's globalization strategy. SolarWorld surpassed the 1 billion euro
mark in revenues for the third year in a row. However, the company
generated EUR 1.047 billion in revenues in fiscal year 2011, compared to
EUR 1.305 in the previous year-a decline of 19.8 percent due to the fall in
prices. Groupwide earnings before interest, taxes, depreciation and
amortization (EBITDA) dropped to EUR 219.3 million, compared with EUR 281.3
in 2010.
Market capitalization in 2011 fell substantially below SolarWorld's equity
reported on the balance sheet. As a consequence, property, plant and
equipment were tested for impairment. This test identified a net impairment
of EUR 314.5 million. The impairments were primarily due to the production
sites in Germany and the United States. The company's earnings before
interest and taxes (EBIT) was greatly affected by the impairment charges
and amounted to EUR -233.2 million (in 2010: EUR 192.8 million). Company
earnings for 2011 amounted to EUR -299.3 million (in 2010: EUR 87.3
million).
Impairment summary
EBIT EUR -233.2 million'The year 2011 was difficult for the solar industry and, for SolarWorld, an
+ net impairment loss for property, plant and equipment
(PPA) EUR 314.5 million
EBIT adjusted by impairment loss of PPA EUR 81.3 million
Other extraordinary effects EUR -51.2 millon
Adjusted EBIT EUR 30.1 million
unsatisfactory one. Our 2011 earnings were affected primarily by global
excess capacities and the tremendous decline in prices that ensued,' CEO
Dr.-Ing. E. h. Frank Asbeck commented. 'In addition, we were confronted by
the insecure conditions of the regulatory framework and economies in our
core markets, in general.'
Strengthening competitiveness
In the fiscal year 2011, SolarWorld decommissioned older production lines
in the U.S. and Germany and began to focus on its state-of-the-art systems
at the fully integrated production sites in Freiberg and Hillsboro. These
restructuring measures, in addition to further measures to improve
efficiency, helped SolarWorld to considerably cut costs in 2011.
However, the substantial savings could not entirely compensate for the
global decline in prices. 'China's dumping prices for modules and its
illegal subsidies are to blame for the massive decline in prices,' explains
Dr.-Ing. E. h.Frank Asbeck. U.S. subsidiary SolarWorld Industries America
Inc., with the support of the Coalition for American Solar Manufacturing
(CASM), filed its trade cases in in the U.S. in October 2011. The U.S.
Department of Commerce is investigating China's subsidy programs and the
pricing policies of Chinese manufacturers. A preliminary decision was made
on March 20, 2012, to put into effect anti-subsidy duties on Chinese solar
power products. In addition, a decision on the U.S. anti-dumping measures
is expected in May. Dr.-Ing. E. h. Frank Asbeck: 'We are confident that we
can restore the conditions of fair competition in this manner.'
International positioning
SolarWorld will continue to strengthen its international positioning as a
leader in quality with a strong brand in 2012. To this end, SolarWorld aims
at further increasing the foreign sales quota in 2012 sales. The company
plans to profit primarily from business in all-in-one kits for small and
mid-sized roof-integrated systems in its home markets of Germany and the
U.S. as well as its export markets in Europe. SolarWorld has already gained
a competitive edge in this area by offering complete and customer-oriented
solutions. Furthermore, SolarWorld has plans to develop new foreign markets
such as India and the Gulf states. Results from company research and
development efforts will soon be transferred to production processes to
further improve efficiency. 'Overall, SolarWorld is in a good position to
meet the international solar power business head-on,' says Dr.-Ing. E. h.
Frank Asbeck.
Forecast for 2012
The forecast for 2012 at SolarWorld AG foresees slow growth on the global
market, as the excess capacities in China continue to increase. The
decision by the German Bundestag on the amendment to the Renewable Energy
Sources Act will play a substantial role, which will also send strong
signals to other markets. The uncertain framework conditions make it
difficult to estimate future sales. SolarWorld AG sees an opportunity to
increase shipments of solar modules compared to 2011. The indicators point
to a decline in revenues in light of these market conditions and under the
assumption that prices will continue to fall.
About SolarWorld AG: The SolarWorld AG Group (ISIN: DE0005108401) is a
worldwide leader in offering brand-name, high quality, crystalline
solar-power technology. Its strength is its fully integrated solar
production. From silicon as the raw material through wafers, cells and
modules all the way to turn-key solar systems of all sizes, the group
combines all stages of the solar value chain. The central business activity
is selling quality modules into the installation and distribution trades
and crystalline wafers to the international solar cell industry. Group
headquarters are located in Bonn, Germany, with sales sites in Singapore,
South Africa, Spain, France as well as in the U.S. state of California. The
group's largest production facilities operate in Freiberg, Germany and
Hillsboro in the U.S. state of Oregon. Sustainability is the basis of the
group strategy. Under the name Solar2World, the group supports care
projects using off-grid solar-power solutions in developing countries,
exemplifying sustainable economic development. Worldwide, SolarWorld
employs about 3,300 people. SolarWorld AG has been quoted on the stock
exchange since 1999 and today is listed on, among others, the TecDAX andÖkoDAX as well as in the sustainability index NAI.
Online version of the 2011 Annual Group Report:
http://annualgroupreport2011.solarworld.de
2011 key figures: http://annualgroupreport2011.solarworld.de/indicators
Photos from the 2011 Financial Statements Press Conference (after 2 p.m.
CET): http://www.solarworld.de/en/press/visual-material/current-photos/
Contact: SolarWorld AG
Phone: +49 (0) 228 559 20 400
Fax: +49 (0) 228 559 20 9400
Email: presse(at)solarworld.de
Internet: www.solarworld.com
End of Corporate News
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Language: English
Company: SolarWorld AG
Martin-Luther-King-Straße 24
53175 Bonn
Germany
Phone: +49 (0)228 - 559 20 470
Fax: +49 (0)228 - 559 20 9470
E-mail: placement(at)solarworld.de
Internet: www.solarworld.de
ISIN: DE0005108401
WKN: 510840
Indices: TecDAX
Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime
Standard); Freiverkehr in Berlin, Hamburg, München,
Stuttgart; Terminbörse EUREX
End of News DGAP News-Service
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161799 22.03.2012
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Datum: 22.03.2012 - 11:20 Uhr
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