DGAP-News: 3W Power/AEG Power Solutions Reports Results for Q1 2013
(firmenpresse) - DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s): Interim
Report
3W Power/AEG Power Solutions Reports Results for Q1 2013
14.05.2013 / 19:57
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3W Power/AEG Power Solutions Reports Results for Q1 2013
(in EUR million) Q1 2013 Q1 2012?in % Q1 2013 Q4 2012?in %
Order backlog 90.9 160.9 -43.5 90.9 126.9 -28.4
Orders 57.9 87.9 -34.2 57.9 111.0 -47.9
Revenue 91.9 79.9 15.1 91.9 113.4 -18.9
Book to Bill 0.63 1.10 -42.8 0.63 0.98 -35.7
EBITDA 8.4 (0.7) n/a 8.4 2.2 281.8
EBITDA margin 9.2% -0.9% 9.2% 2.0%
Normalized EBITDA 8.5 0.0 n/a 8.5 7.4 14.9
Normalized EBITDA margin 9.2% n/a 9.2% 6.6%
Historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation during Q3 2012.
Luxembourg/Zwanenburg, The Netherlands - May 14, 2013 - 3W Power SA (Prime
Standard, ISIN GG00B39QCR01, 3W9), the holding company of AEG Power
Solutions B.V., a leading global provider of power electronic systems and
solutions for industrial power supplies and renewable energies, today
announced results for Q1 2013. Order intake in Q1 2013 was EUR57.9
million, down 34.2% year-on-year (Q1 2012: EUR87.9 million) and down 47.9%
compared to the prior quarter (Q4 2012: EUR111.0 million). Order backlog
in Q1 2013 was EUR90.9 million, down 43.5% year-on-year (Q1 2012: EUR160.9
million) and down 28.4% compared to the prior quarter (Q4 2012: EUR126.9
million). The drop in orders is the result of the ongoing weakness in POC
and delays in large Solar project orders.
Revenue in Q1 2013 was EUR91.9 million, up 15.1% compared to Q1 2012
(EUR79.9 million), primarily driven by Solar revenue but down 18.9%
compared to the prior quarter (Q4 2012: EUR113.4 million) due to a
seasonally strong Q4 2012. Normalized EBITDA in Q1 2013 was EUR8.5
million, which excludes one-time expenses of EUR0.1 million. This
corresponds to Normalized EBITDA of EUR0.0 million in Q1 2012 and EUR7.4
million in Q4 2012. The increase in EBITDA was due to strong Solar EBITDA
as large Solar orders were fulfilled and a reduction of EUR1.1 million
(including one-time restructuring expenses of EUR0.1 million) in shared
costs.
At the end of Q1 2013, the cash position of the Company was EUR33.1
million, down EUR9.8 million from EUR42.9 million at the end of Q4 2012.
This was mainly due to operating cash outflow of EUR6.9 million which
relates in essence to first quarter EBITDA offset by a reduction in advance
customer payments (deferred income) and paid provisions. In addition, there
was a EUR3.8 million cash outflow as a result of income taxes paid. The
Company's major Solar customer, with whom the Company experienced payment
delays exacerbated by the banking situation in Cyprus, in April re-started
their payment cycle and initiated large payments to the Company. At the
end of April, 2013 the Company's cash balance increased to EUR43.3 million
and its gross accounts receivable balance with the customer was down to
EUR37.8 million. Furthermore, the customer is fully current on outstanding
amounts owed.
Renewable Energy Solutions - Solar
(in EUR million) Q1 2013 Q1 2012?in % Q1 2013 Q4 2012?in %
Order backlog 13.6 19.0 -28.4 13.6 42.7 -68.2
Orders 11.8 21.5 -45.1 11.8 66.7 -82.3
Revenue 40.6 11.6 250.6 40.6 51.5 -21.1
EBITDA 9.1 (2.4) n/a 9.1 3.4 n/a
EBITDA margin 22.5% -20.7% 22.5% 6.6%
Normalized EBITDA 9.1 (2.4) n/a 9.1 3.4 n/a
Normalized EBITDA margin 22.5% -20.7% 22.5% 6.6%
Historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation during Q3 2012.
Solar orders were EUR11.8 million in Q1 2013, down 45.1% year-on-year (Q1
2012: EUR21.5 million) and down 82.3% compared to the prior quarter (Q4
2012: EUR66.7 million), mainly due to delays in large Solar project orders
and strong order intake in Q4 2012. Solar order backlog was EUR13.6
million in Q1 2013, down 28.4% year-on-year (Q1 2012: EUR19.0 million) and
down 68.2% compared to the prior quarter (Q4 2012: EUR42.7 million).
Solar revenue was EUR40.6 million in Q1 2013, an increase of 250.6%
year-on-year (Q1 2012: EUR11.6 million), driven by a large contract for 240
MW of photovoltaic utility scale equipment and services, for which the
Company provided complete electrical systems for nine photovoltaic power
plants in Eastern Europe. Solar revenue was down 21.1% compared to the
prior quarter (Q4 2012: EUR51.5 million) due to a seasonally strong Q4
2012. Solar EBITDA was EUR9.1 million in Q1 2013, up both from a negative
EBITDA a year ago (Q1 2012: -EUR2.4 million) and from the prior quarter (Q4
2012: EUR3.4 million). EBITDA has improved due to an exceptionally strong
Q4 that spilled over into Q1 2013 as large Solar orders were fulfilled.
Renewable Energy Solutions - POC
(in EUR million) Q1 2013 Q1 2012?in % Q1 2013 Q4 2012?in %
Order backlog 6.0 67.6 -91.1 6.0 14.4 -58.4
Orders 6.6 24.0 -72.4 6.6 3.9 69.2
Revenue 15.0 21.4 -29.7 15.0 12.5 20.0
EBITDA 3.5 4.9 -28.8 3.5 5.2 -32.7
EBITDA margin 23.2% 22.9% 23.2% 41.7%
Normalized EBITDA 3.5 4.9 -28.8 3.5 5.2 -32.7
Normalized EBITDA margin 23.2% 22.9% 23.2% 41.7%
Historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation during Q3 2012.
Orders in POC were EUR6.6 million in Q1 2013, down 72.4% year-on-year (Q1
2012: EUR24.0 million) due to the weakness in POC and up 69.2% compared to
the prior quarter (Q4 2012: EUR3.9 million). POC order backlog was EUR6.0
million in Q1 2013, down 91.1% year-on-year (Q1 2012: EUR67.6 million) and
down 58.4% compared to the prior quarter (Q4 2012: EUR14.4 million).
POC revenue was EUR15.0 million in Q1 2013, down 29.7% year-on-year (Q1
2012 EUR21.4 million) driven by the weakness in POC but up 20.0% compared
to the prior quarter (Q4 2012: EUR12.5 million). POC EBITDA was EUR3.5
million in Q1 2013, down 28.8% year-on-year (Q1 2012: EUR4.9 million) and
down 32.7% from the prior quarter (Q4 2012: EUR5.2 million). POC is in the
midst of a major investment trough in the capex cycle for the expansion of
polysilicon production capacity and the oversupply situation for
polysilicon is expected to continue for the foreseeable future. Orders and
revenues of non polysilicon systems and emerging smart grid applications
continue to present future opportunity but at present are not sufficient to
offset the lack of polysilicon business.
Energy Efficiency Solutions - EES
(in EUR million) Q1 2013 Q1 2012?in % Q1 2013 Q4 2012?in %
Order backlog 71.3 74.3 -4.1 71.3 69.8 2.1
Orders 39.5 42.4 -7.0 39.5 40.5 -2.5
Revenue 36.3 46.9 -22.6 36.3 49.4 -26.5
EBITDA (1.9) 1.2 n/a (1.9) (1.5) -26.7
EBITDA margin -5.1% 2.5% -5.1% -3.0%
Normalized EBITDA (1.9) 1.2 n/a (1.9) 1.7 n/a
Normalized EBITDA margin -5.1% 2.5% -5.1% 3.3%
Historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation during Q3 2012.
Order intake in EES was EUR39.5 million in Q1 2013, down 7.0% year-on-year
(Q1 2012: EUR42.4 million). Compared to the prior quarter, EES orders were
down 2.5 % (Q4 2012: EUR40.5 million) due to postponed orders and generally
weak demand. The order backlog stood at EUR71.3 million in Q1 2013, down
4.1 % year-on-year (Q1 2012: EUR74.3 million) but up 2.1% compared to the
prior quarter (Q4 2012: EUR69.8 million).
Revenue was EUR36.3 million in Q1 2013, down 22.6% compared to the prior
year (Q1 2012: EUR46.9 million) and down 26.5% compared to the prior
quarter (Q4 2012: EUR49.4 million) as both industrial and commercial UPS
were impacted by the weak demand as the businesses suffered from project
delays and investment cutbacks from customers. Normalized EBITDA for EES
in Q1 2013 was -EUR1.9 million. This compares to EUR1.2 million in Q1 2012
and EUR1.7 million in Q4 2012. The decline in Normalized EES EBITDA is
primarily due to lower DC Telecom volumes.
During Q3 2012, the Company decided to divest the loss-generating telecom
converter and LED business in Lannion, France within EES classifying the
business as a discontinued operation. For Q1 2013, the Company's loss
from discontinued operations was EUR1.8 million. The decision is
consistent with the Company's ongoing effort to minimize complexity within
the Group and to reduce its exposure to telecommunications activities.
Outlook
'Looking at 2013, the Company is fortunate to have such well-diversified
businesses - both geographically and across industries and markets. When
combined with our talented people and sound strategic direction, we are
positioning ourselves to seize the opportunities of the future', states
Bruce A. Brock, CEO of 3W Power and AEG Power Solutions. 'Nonetheless,
2013 will be a challenging year.'
Aside from the continued global macroeconomic issues, the most significant
challenge in the business in the past year was the lack of investment in
new polysilicon capacity in the market. In the past, the Company's
participation in polysilicon systems through POC was a leading contributor
to positive free cash flow for the Company. For the foreseeable future the
Company does not anticipate a return of this lucrative business. Despite
this market volatility, the POC business remains profitable on the basis of
other systems and applications, though at much lower revenue levels. In
the meantime, POC will continue to be a center of innovation and
technological strength. The Company continues to focus on developing
promising new systems and applications such as advanced industrial
applications and power control systems for energy storage and Smart Grid.
These activities should contribute meaningful growth and profitability in
the medium-term.
AEG Power Solutions' Solar business is less exposed to the challenging
Western European markets than many of its competitors. The Solar business
has a strong footprint in growth regions around the world. The Company
continues to drive growth in key Solar end-markets of Asia, Africa, the
U.S., South America and Eastern Europe. While the Solar business has
continued to grow and the Company has maintained healthy margins, the
growth has also required a sizeable investment in working capital. Much of
this working capital is tied to large projects in Eastern Europe.
AEG Power Solutions' industrial business provides a solid and resilient
base that helps to insulate the Company from the morevolatile and cyclical
POC and Solar business segments. AEG Power Solutions continues to focus on
improving the profitability within its industrial business of EES whilst
supporting the growth and development of Solar. The Company expects EES to
grow moderately and with incremental margin improvements resulting from the
business improvement initiatives introduced in 2012. Profitability in the
telecommunications sector will remain challenging and the Company is
seeking ways to reduce exposure to this market.
For the Group, replacing the cash flows and profitability of polysilicon
systems business will be a challenge. The Company has aggressively adapted
to the changing dynamics by actively managing its capital spend and
redirecting efforts to capitalize on market opportunities around the world.
For 2013 AEG Power Solutions still expects to achieve overall sales volumes
near 2012 levels and Normalized EBITDA comparable to 2012 performance. On
a segment level for 2013, AEG Power Solutions currently anticipates the
following:
- EES, excluding the telecom converter business (CVT/LED), will achieve
modest year-on-year revenue growth and some profitability improvement
given ongoing cost improvement initiatives;
- Solar orders and revenue are extremely difficult to predict in the
current environment; however, there is a possibility that Solar will
grow profitably year-on-year;
- POC orders and revenue will fall short of 2012 levels on continued
weakness in the polysilicon market; however, POC will remain profitable
even at substantially lower volumes.
- Due to the recent organizational changes including the appointment of a
new CEO as well as President and General Manager, the central costs
will increase to a run rate of over EUR10.0 million per annum. The
Company is considering measures to reduce this level.
'The Company must find ways in the near term to balance the growing demands
of the Solar business including its working capital requirements with
initiatives necessary to improve cash flows', emphasizes Bruce A. Brock.
'Doing so will require careful planning and working capital management.
While the difficult economic environment poses challenges, we are confident
that the strength of our robust products and market diversity allow us to
position ourselves for expected growth and value creation.'
-- End of Announcement --
Characters: c. 12,500
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, and DC systems.
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' global footprint includes 22 subsidiaries, offices and competence
centers around the world with 1,600 employees.
For more information, visit 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 further information, please contact:
Katja Buerkle
Investor Relations&Financial Communications
AEG Power Solutions
Tel.: +31 20 4077 854
Mobile: +31 6 1095 9019
Email: investors(at)aegps.com
Christian Hillermann
Hillermann Consulting
IR consultancy of AEG Power Solutions
Tel.: +49 40 320 279 10
Mobile: +49 173 5379660
Email: office(at)hillermann-consulting.de
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.com
Internet: www.aegps.com
ISIN: GG00B39QCR01, DE000A1A29T7,
WKN: A0Q5SX, A1A29T,
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, München, Stuttgart
End of News DGAP News-Service
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