DGAP-News: 3W Power/AEG Power Solutions reports results for Q3 2012
(firmenpresse) - DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s): Quarter
Results
3W Power/AEG Power Solutions reports results for Q3 2012
13.11.2012 / 07:00
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3W Power/AEG Power Solutions reports results for Q3 2012
(in EUR million) Q3 2012 Q3 2011(1)?in % Q3 2012 Q2 2012(1)?in
%
Order backlog 135.3 200.2 -32.4 135.3 126.8 6.7
Orders 89.2 99.4 -10.2 89.2 83.1 7.4
Revenue 81.0 103.2 -21.6 81.0 93.8 -13.7
Book to Bill 1.10 0.96 14.4 1.10 0.89 23.6
EBITDA 11.0 17.5 -37.0 11.0 5.7 na
EBITDA margin 13.6% 17.0% 13.6% 6.1%
Normalized EBITDA 13.7 17.4 -21.3 13.7 5.9 na
Normalized EBITDA margin 16,9% 16.8% 16.9% 6.3%
(in EUR million) 9M 2012 9M 2011(1)?in
%
Order backlog 135.3 200.2 -32.4
Orders 260.3 307.0 -15.2
Revenue 254.6 282.6 -9.9
Book to Bill 1.02 1.09 -5.9
EBITDA 16.0 41.4-61.4
EBITDA margin 6.3% 14.6%
Normalized EBITDA 19.6 40.2 -51.3
Normalized EBITDA margin 7.7% 14.2%
(1)historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation in Q3 2012.
Luxembourg/ Zwanenburg, The Netherlands - November 13, 2012 - 3W Power SA
(Prime Standard, ISIN GG00B39QCR01, 3W9), the holding company of AEG Power
Solutions (AEG PS), a global leading provider of power electronic systems
and solutions for industrial power supplies and renewable energies, today
announced results for Q3 2012.
Order intake in Q3 2012 was EUR 89.2 million, down 10.2% year-on-year as a
result of a significant drop in orders for polysilicon systems for POC in
RES. Compared to the prior quarter, orders were up 7.4% primarily coming
from Solar which is resuming solid growth after renewed ability of some key
customers to obtain project financing. Order backlog in Q3 2012 was EUR
135.3 million, down 32.4% year-on-year but up 6.7% compared to Q2 2012.
The book-to-bill ratio of 1.10 in Q3 2012 provides a solid underpinning
despite the persistent weaknesses in the macroeconomic environment.
Revenue in Q3 2012 was EUR 81.0 million, down 21.6% compared to Q3 2011
(EUR 103.2 million) and down 13.7% compared to the prior quarter (EUR 93.8
million) with increases in Solar revenue (up 13.3%) offset by lower POC and
EES revenue. Normalized EBITDA in Q3 2012 was EUR 13.7 million, which
excludes one-time charges of EUR 2.7 million. This corresponds to
normalized EBITDA in Q3 2011 of EUR17.4 million and EUR 5.9 million in Q2
2012. The Group maintained solid liquidity in Q3 and had EUR 65.3 million
cash on balance sheet at the end of September 2012.
On November 5, AEG PS completed the sale of EMED, a 5.75MW solar
installation in Puglia, Italy for a total consideration of EUR 24.3
million, which includes the assumption of EUR 17.4 million of debt. In Q3
2012, EMED contributed EUR 0.8 million in operating income to the Group.
RES Business Segment
(in EUR million) Q3 2012 Q3 2011(1)?in % Q3 2012 Q2 2012(1)?in %
54.5 119.0 -54.3 54.5 54.2 0.5
Order backlog
42.1 55.8 -24.5 42.1 37.2 13.3
Orders
42.3 62.1 -31.8 42.3 51.7 -18.2
Revenue
11.8 20.0 -40.8 11.8 10.3 15.1
EBITDA
27.9% 32.2% 27.9% 19.9%
EBITDA margin
(1)historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation in Q3 2012.
Orders in Renewable Energy Solutions (RES) were EUR 42.1 million in Q3
2012, down 24.5% from EUR 55.8 million year-on-year, resulting from lower
POC business partially offset by strong order intake from Solar (up 129.4%
year-on-year). Compared to Q3, orders were up 13.3% from EUR 37.2 million
largely driven by Solar (up 24.5%). RES order backlog in Q3 2012 was EUR
54.5 million, down 54.3% year-on-year but up 0.5% compared to Q2 2012.
RES revenue was down 31.8% to EUR 42.3 million in Q3 2012 compared to EUR
62.1 million in Q3 2011 with increases in Solar revenue not sufficient to
offset the weakness in POC. Compared to Q2 2012, RES revenue was down
18.2% with increases in Solar (up 13.3%) offset by a drop in POC. Segment
EBITDA for RES was EUR 11.8 million in Q3 2012 compared to EUR 20.0 million
in Q3 2011, again a reflection of the drop in highly profitable POC
revenues.
In Q3 2012, the Company recorded an accelerated amortization charge for
customer-related intangible assets of EUR 43.3 million driven by the
current significant overcapacity in the POC market and corresponding
investment reluctance of the Company's customers. The spot market for
polysilicon continues to indicate an oversupply situation. 'While we
strongly believe that the polysilicon market will recover in the
medium-term, it remains a strategic priority for us to continue
diversifying the Power Controller business beyond polysilicon applications
into promising areas', comments Horst J. Kayser, CEO of 3W Power/AEG Power
Solutions.
EES Business Segment
(in EUR million) Q3 2012 Q3 2011(1)?in % Q3 2012 Q2 2012(1)?in %
80.8 81.1 -0.4 80.8 72.6 11.3
Order backlog
47.1 43.6 8.0 47.1 45.9 2.6
Orders
38.7 41.1 -5.8 38.7 42.1 -8.0
Revenue
2.5 2.0 25.0 2.5 0.1 n/a
EBITDA
6.5% 4.9% 6.5% 0.3%
EBITDA margin
(1)historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation in Q3 2012.
In Energy Efficiency Solutions (EES), order intake for Q3 2012 was EUR 47.1
million, up 8.0% year-on-year (Q3 2011: EUR 43.6 million) due to higher EMS
order intake. Compared to the prior quarter, EES showed moderate growth, up
2.6% mainly due to lower DCT orders. The order backlog stood at EUR 80.8
million in Q3 2012, down 0.4% compared to the prior year but up 11.3%
compared to EUR 72.6 million in Q2 2012.
Revenue was EUR 38.7 million in Q3 2012, down 5.8% compared to the prior
year (Q3 2011: EUR 41.1 million) and down 8.0% compared to EUR 42.1 million
in Q2 2012. Segment EBITDA for EES in Q3 2012 was EUR 2.5 million,
including restructuring charges of EUR 1.3 million, compared to EUR 2.0
million in Q3 2011 and EUR 0.1 million in Q2 2012.
In Q3 2012, the Company has classified its loss-generating telecom
converter business in Lannion, France within EES as a discontinued
operation and asset held for sale. For the three and nine-months ending
September 2012, the Company's loss from discontinued operations was EUR 4.9
million and EUR 8.2 million, respectively.
Outlook
For the full financial year 2012, 3W Power expects revenue of EUR
370-EUR 380 million and projects a normalized EBITDA margin of at least 9%
which excludes the discontinued operations of the telecom converter
business (CVT/LED). This EBITDA expectation has an additional upside of up
to EUR 7 million due to contractual cancellation fees that may be
recognized in Q4 2012. The expectation is based on continued margin
improvements in the EES business segment and an order and sales pipeline
above 2011 levels in Solar within RES for the fourth quarter of 2012.
While AEG PS is well diversified and excellently positioned both
technologically and also geographically to capture opportunities in its key
global industrial vertical markets as well as in the renewable energy
markets, the Company expects 2013 will be a challenging year given the
continued global macroeconomic issues and the overcapacity in the
polysilicon industry. As such, AEG PS has initiated a multi-faceted cost
improvement initiative to continue to increase structural profitability.
The Company has launched a global EES headcount reduction of more than 100
employees, principally in Warstein-Belecke, Germany. This initiative,
together with the effects of product clinics, purchasing initiatives to
reduce material costs and structural efficiency programs undertaken in
2012, is expected to achieve run-rate cost savings of approximately EUR 7
million. In addition, AEG PS has further focused on reducing its central
overhead costs and is targeting an annual run-rate of its central overhead
costs of approximately EUR 10 million. Restructuring provisions and
one-off costs for all of these initiatives are expected to be approximately
EUR 9.7 million. The Company took a restructuring charge of EUR 2.4
million in Q3 2012 and expects to take a charge for the balance of these
initiatives in Q4 2012.
The diversity of the Company's business mix and its exposure to the solar
market makes accurate forecasting in the current economic environment
difficult. For 2013 AEG PS expects to achieve overall sales volumes above
2012 levels and with its cost reduction initiatives and stressed emphasis
on continuous improvement the Company expects to maintain similar EBITDA
profitability levels to those of 2012. On a segment level for 2013, AEG PS
currently anticipates the following:
- Solar orders and revenue to grow profitably year-on-year,
- POC orders and revenue to fall short of 2012 levels on continued
weakness in the polysilicon market; POC will remain profitable even at
substantially lower volumes; and,
- EES, excluding the telecom converter business (CVT/LED), to achieve
modest year-over-year revenue growth but with a step-change in
profitability given the significant cost improvement initiatives.
Horst J. Kayser emphasizes that 'AEG PS is fortunate to have such a
diversified business both geographically as well as across industries and
markets. With a focus on both cash flow and exciting new growth areas we
are well positioned for the future.' AEG PS' industrial business continues
to provide a solid and resilient base that helps to insulate the Company
from the more volatile and cyclical business segments within RES. AEG PS
continues to focus on improving the profitability and cash generation of
EES whilst supporting the growth and development of Solar. The Company's
Solar business is well positioned and less exposed to the challenging
Western European markets relative to key competitors. The recent
certification of the Protect PV.500-UL to the North American standard now
also positions the Company in the U.S. solar market. Furthermore, the only
local producer of utility scale solar inverters in South Africa, AEG PS is
uniquely positioned in growth regions of Southern Africa as well as in
Eastern Europe and India. Lastly, despite near-term market volatility, the
POC business remains profitable and will continue to be a center of
innovation and technological strength as the Company diversifies into new
promising areas such as advanced industrialapplications and power control
systems for energy storage and Smart Grid applications.
-- End of Announcement -
Characters: c. 10,100
About 3W Power/AEG Power Solutions:
3W Power S.A. (WKN A0Q5SX / ISIN GG00B39QCR01), based in Luxembourg, is the
holding company of AEG Power Solutions Group. The Group is headquartered in
Zwanenburg in the Netherlands. The shares of 3W Power are admitted to
trading on Frankfurt Stock Exchange (ticker symbol: 3W9).
AEG Power Solutions (AEG PS) Group is a global provider of power
electronics systems and solutions for all industrial power requirements
offering one of the most comprehensive product and service portfolios in
the area of power conversion and power control. Two complementary
operating business segments, Renewable Energy Solutions (RES) and Energy
Efficiency Solutions (EES) serve customers worldwide. The RES product and
service portfolio consists of systems and solutions for solar power plants,
such as solar inverters, monitoring and control systems as well as power
controllers for a wide range of industrial applications such as
polysilicon, energy storage, sapphire, and glass. The EES product and
service portfolio includes high-performance uninterruptable power supplies
(UPSs), industrial chargers, DC systems and converters.
Thanks to its distinctive expertise, bridging both AC and DC power
technologies and spanning the worlds of both conventional and renewable
energy, the company creates innovative solutions for smart grids.
AEG PS' footprint is global including 17 subsidiaries and competence
centers around the world, employing 1,700 employees.
For more information go to: www.aegps.com
This communication does not constitute an offer or the solicitation of an
offer to buy, sell or exchange any securities of 3W Power. This
communication contains forward-looking statements which include, inter
alia, statements expressing our expectations, intentions, projections,
estimates, and assumptions. These forward-looking statements are based on
the reasonable evaluation and opinion of the management but are subject to
risks and uncertainties which are beyond the control of 3W Power and, as a
general rule, difficult to predict. The management and the company cannot
and do not, under any circumstances, guarantee future results or
performance of 3W Power and the actual results of 3W Power may materially
differ from the information expressed or implied in the forward-looking
statements. As a result, investors are cautioned against relying on the
forward-looking statements contained herein as a basis for their investment
decisions regarding 3W Power.
3W Power undertakes no obligation to update or revise any forward-looking
statement contained herein.
For more information, contact:
Investor Relations:
Katja Buerkle
Associate Director
AEG Power Solutions
Phone: +31 20 4077 854
Cell: +31 6 1095 9019
E-mail: investors(at)aegps.com
Media Relations:
Christiane L. Döhler
M. A. - Exec. MBA HSG
DOEHLER COMMUNICATIONS
Phone: +49 89 51616810
Cell: +49 175 2905054
E-mail: cd(at)doehler-communications.com
End of Corporate News
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Language: English
Company: 3W Power S.A. / AEG Power Solutions
19, rue Eugène Ruppert
L-2453 Luxembourg
Grand Duchy of Luxembourg
Phone: +31 20 4077 863
Fax: +31 20 4077 875
E-mail: michael.julian(at)aegps.comInternet: www.aegps.com
ISIN: GG00B39QCR01
WKN: A0Q5SX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, München, Stuttgart
End of News DGAP News-Service
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