DGAP-News: 3W Power/AEG Power Solutions Reports Results for Q2 2013
(firmenpresse) - DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s): Half
Year Results
3W Power/AEG Power Solutions Reports Results for Q2 2013
14.08.2013 / 06:57
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3W Power/AEG Power Solutions Reports Results for Q2 2013
(in EUR million) Q2 2013 Q2 2012?in % Q2 2013 Q1 2013?in %
Order backlog 96.8 131.9 -26.6 96.8 94.0 3.0
Orders 66.1 87.0 -23.9 66.1 60.0 10.3
Revenue 57.9 98.2 -41.0 57.9 94.4 -38.7
Book to Bill 1.1 0.9 29.0 1.1 0.6 79.9
EBITDA (11.6) 4.8 (11.6) 6.7
EBITDA margin -20.0% 4.9% -20.0% 7.1%
Normalized EBITDA (10.1) 5.0 (10.1) 7.1
Normalized EBITDA margin -17.4% 5.1% -17.4% 7.5%
Historical numbers have been represented to reflect the change in
classification of the telecom converter business (CVT/LED). It is now
included in the reported financials.
Luxembourg/Zwanenburg, The Netherlands - August 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 Q2 2013. Order intake in Q2 2013 was EUR 66.1
million, down 23.9% year-on-year (Q2 2012: EUR 87.0 million) but up 10.3%
compared to the prior quarter (Q1 2013: EUR 60.0 million). Order backlog
in Q2 2013 was EUR 96.8 million, down 26.6% year-on-year (Q2 2012: EUR
131.9 million) but up by 3.0% compared to the prior quarter (Q1 2013: EUR
94.0 million).
Revenue in Q2 2013 was EUR 57.9 million, down 41.0% compared to Q2 2012
(EUR 98.2 million) and down 38.7% compared to the prior quarter (Q1 2013:
EUR 94.4 million) as expected due to low order intake during Q1 2013,
primarily in Solar and POC. EBITDA in Q2 2013 was EUR (11.6) million
including one-time expenses of EUR 1.6 million. This corresponds to EBITDA
of EUR 4.8 million (including one-time expenses of EUR 0.2 million) in Q2
2012 and EUR 6.7 million in Q1 2013. The decrease in EBITDA was due to
lower volumes in Solar and POC and an increased provision for restructuring
costs.
At the end of Q2 2013, the cash position of the Company was EUR 49.5
million, up EUR 16.5 million from EUR33.0 million at the end of Q1 2013 and
its gross accounts receivable balance was down to EUR 79.4 million.
Solar System Solutions - Solar
(in EUR million) Q2 2013 Q2 2012?in % Q2 2013 Q1 2013?in %
Order backlog 10.4 21.5 -51.6 10.4 13.6 -23.5
Orders 10.1 30.6 -66.9 10.1 11.8 -14.4
Revenue 12.5 25.6 -51.1 12.5 40.6 -69.2
EBITDA (3.4) 3.2 -32.3 (3.4) 9.1
EBITDA margin -27.4% 12.6% -27.4% 22.5%
Normalized EBITDA (3.4) 3.2 (3.4) 9.1
Normalized EBITDA margin -27.4% 12.6% -27.4% 22.5%
Historical numbers have been represented to reflect the change in
classification of the telecom converter business (CVT/LED). It is now
included in the reported financials.
Solar orders were EUR 10.1 million in Q2 2013, down 66.9% year-on-year (Q2
2012: EUR 30.6 million) and down 14.4% compared to the prior quarter (Q1
2013: EUR 11.8 million), mainly due to the failure to secure new Solar
project orders. Solar order backlog was EUR 10.4 million in Q2 2013, down
51.6% year-on-year (Q2 2012: EUR 21.5 million) and down 23.5% compared to
the prior quarter (Q1 2013: EUR 13.6 million). The market for large
project orders in Solar remains difficult. Industry consolidation, a
continued reduction in inverter prices and stretched payment terms/customer
financing requirements pose challenges for AEG Power Solutions.
Solar revenue was EUR 12.5 million in Q2 2013, a decrease of 51.1%
year-on-year (Q2 2012: EUR 25.6 million) and down 69.2% compared to the
prior quarter (Q1 2013: EUR 40.6 million) as a result of a particularly
strong Q1 2013. Solar EBITDA was EUR (3.4) million in Q2 2013, down from a
year ago (Q2 2012: EUR 3.2 million) and from the prior quarter (Q1 2013:
EUR 9.1 million).
Despite the Q2 2013 revenue under performance, AEG Power Solutions
continues to develop and build its Solar business. For instance in Q2 2013,
AEG Power Solutions' Indian operations completed commissioning 100MW of
central inverters manufactured in-country and has another 40MW under
commissioning. The Company's systems in India have yielded excellent
energy production performance, exceeding customers' expectations and
projections. In the US, AEG Power Solutions' new modular MPV solar
solution, which is designed by our Dallas subsidiary and manufactured in
the US, has been selected for projects in the US as well as Japan. AEG
Power Solutions continues to demonstrate its capability to globally provide
value-added services including industry leading monitoring and control
systems insuring the customers' return on their investment.
Power Controller Solutions - POC
(in EUR million) Q2 2013 Q2 2012?in % Q2 2013 Q1 2013?in %
Order backlog 6.1 32.7 -81.3 6.1 6.0 2.0
Orders 5.6 6.6 -15.0 5.6 6.6 -15.0
Revenue 5.2 26.1 -80.1 5.2 15.0 -65.4
EBITDA (1.9) 7.0 (1.9) 3.5
EBITDA margin -36.7% 26.7% -36.7% 23.2%
Normalized EBITDA (1.9) 7.0 (1.9) 3.5
Normalized EBITDA margin -36.7% 26.7% -36.7% 23.2%
Historical numbers have been represented to reflect the change in
classification of the telecom converter business (CVT/LED). It is now
included in the reported financials.
Orders in POC were EUR 5.6 million in Q2 2013, down 15.0% year-on-year (Q2
2012: EUR 6.6 million) and down 15.0% compared to the prior quarter (Q1
2013: EUR 6.6 million) due to the continued weakness in POC. POC order
backlog was EUR 6.1 million in Q2 2013, down 81.3% year-on-year (Q2 2012:
EUR 32.7 million) up slightly at 2.0% compared to the prior quarter (Q1
2013: EUR 6.0 million).
POC revenue was EUR 5.2 million in Q2 2013, down 80.1% year-on-year (Q2
2012 EUR 26.1 million) and down 65.4% compared to the prior quarter (Q1
2013: EUR 15.0 million) driven by the continued weakness in the polysilicon
market. POC EBITDA was EUR (1.9) million in Q2 2013, down from EUR 7.0
million year-on-year and down from EUR 3.5 million in the prior quarter.
POC is not yet showing any indication of recovery. As such, Power
Controller revenue in support of the polysilicon manufacturing will reduce
to zero over the near term and then return, at a low level in late 2015.
AEG Power Solutions continues to focus on market and product
diversification and management has applied the Company's industry leading
technology into other expanding industrial and smart energy management
markets to offset the poly market decline.
Energy Efficiency Solutions - EES
(in EUR million) Q2 2013 Q2 2012?in % Q2 2013 Q1 2013?in %
Order backlog 80.3 77.7 3.3 80.3 74.4 7.9
Orders 50.4 49.8 1.3 50.4 41.5 21.5
Revenue 40.2 46.5 -13.7 40.2 38.8 3.7
EBITDA (1.9) (0.7) (1.9) (3.6)
EBITDA margin -4.7% -1.4% -4.7% -9.3%
Normalized EBITDA (2.0) (0.5) (2.0) (3.3)
Normalized EBITDA margin -4.9% -1.0% -4.9% -8.6%
Historical numbers have been represented to reflect the change in
classification of the telecom converter business (CVT/LED). It is now
included in the reported financials.
Order intake in EES showed slight momentum with a strong order intake of
EUR 50.4 million in Q2 2013, up 1.3% year-on-year (Q2 2012: EUR 49.8
million) and up 21.5% compared to the prior quarter (Q1 2013: EUR 41.5
million). Both Data/IT Solutions and Industrial Power Solutions
contributed to the increased order intake compared to Q2 2012. However, in
Industrial Power Solutions, the Group still faces delays in orders and
investment cutbacks by customers. The Communication Power Solutions and
Converters business continues to lose market share. EES order backlog
stood at EUR 80.3 million in Q2 2013, up 3.3% year-on-year (Q2 2012: EUR
77.7 million) and up 7.9% compared to the prior quarter (Q1 2013: EUR 74.4
million). The book to bill ratio at the end of the June increased from 1.1
to 1.3.
Revenue was EUR 40.2 million in Q2 2013, down 13.7% compared to the prior
year (Q2 2012: EUR 46.5 million) as both industrial and commercial UPS were
impacted following low order intake in the previous quarter but improved
3.7% compared to the prior quarter (Q1 2013: EUR 38.8 million). Data/IT
Solutions contributed with increased revenue which was partially offset by
reduced revenue in Communication Solutions and Converters. EBITDA for EES
in Q2 2013 was EUR (1.9) million. This compares to EUR (0.7) million in Q2
2012 and EUR (3.6) million in Q1 2013. As with revenues, profit growth in
our Data/IT Solutions business was offset by operating losses in the
Communications Solutions and Converters business.
In 2012 AEG Power Solutions made the determination to classify the Telecom
Converter business in Lannion, France as a discontinued operation/asset
held for sale. Following the change in management in April 2013 and in
consultation with the Board of directors, the decision has been made to
retain and re-organize the French legal entity in Lannion. This entity's
expertise in power electronics engineering will be used by the Group to
accelerate product introduction and improve operations throughout the EES
business. In connection with this change, there will be a head count
reduction of approximately 20 people. Per IFRS, as a result of the
decision, the financial statements for the Company have been represented in
Q2 2013 and Q2 2012 to reflect the performance of Lannion. Accordingly,
the assets and liabilities of Lannion have been included in the
consolidated assets and liabilities of the Group and the operational loss
of EUR 2.4 million (2012: EUR 2.6 million) is included in continued
operations.
Outlook
AEG Power Solutions is a power electronics company and world-class supplier
of power electronics systems and solutions in several vertical markets like
oil and gas, transportation, solar, data and IT and more. For AEG Power
Solutions, power electronics is an enabling technology. As a
well-diversified power electronics provider, AEG Power Solutions has the
ability to level market variations - both geographically and across markets
throughout the power electronics spectrum. 'Since I re-joined the Company
in April of this year, my focus has been on quickly shifting the business
strategies back to our major strength - Systems Solutions - and away from
selling pure product solutions. At the same time we immediately started
aligning the organizational structure and leadership to support the return
to our successful Systems strategies' states Bruce A. Brock, CEO of 3W
Power and AEG Power Solutions. 'While AEG Power Solutions is like a large
ship and sometimes slow to turn, I can assure everyone that based on my
knowledge of the market and of AEG Power Solutions we are making our
'return to our strengths' quickly and are thus positioning our Company to
capture power systems and micro-grid solution opportunities immediately.'
Aside from continued global macroeconomic weakness, the most significant
challenge faced by the Company in the past year has been the lack of
investment in new polysilicon capacity in the market. POC remains in the
midst of a major investment trough in the capex cycle for the expansion of
polysilicon production capacity. Unfortunately, this oversupply situation
for polysilicon is expected to continue for the foreseeable future. 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, AEG Power Solutions does not anticipate a return of
this lucrative business. However, with its industry leading power
electronics technology, POC will continue to be a center of innovation and
technological strength for emerging smart energy management system needs by
establishing reference sites which incorporate complex applications of the
future. Accordingly, the Company continues to focus on developing promising
new (non-polysilicon) applications and system solutions such as advanced
industrial applications and power control systems for energy storage, smart
grid solutions, and off-grid systems. Mr. Brock states: 'as a demonstration
of our return to our systems strategy, the Company has signed a teaming
agreement with a strategic partner to provide support for the development
of secure and resilient on-grid solutions as well as isolated off-grid
distributed power generation systems and storage for mission critical
infrastructure starting in North America.' These solutions are derived
from and are expected to generate sales in all product lines and management
believes that the Company is uniquely positioned to address this emerging
market development. These activities are expected to contribute
meaningfully to growth and profitability in the medium-term.
AEG Power Solutions' Solar business has a footprint in promising growth
regions around the world and the Company continues to seek significant
growth in the key solar end-markets of Asia, India, Africa, the U.S., South
America and Eastern Europe. While Solar has a substantial project
pipeline, the segment is impacted by changing government subsidies,
increased competition, market consolidation and an uneven order intake for
large projects which make projections difficult. The solar revenue
performance in the second quarter was disappointing and the outlook for the
rest of the year is increasingly challenging.
As AEG Power Solutions' core business and source of much of the Company's
technology, the Company's industrial EES business provides a solid revenue
base that helps to insulate the Company from the more volatile Solar and
POC vertical markets. The Company expects the Industrial Power Solutions
segment of EES to grow moderately in 2013. Growth and any uptick in
profitability are expected to come from the commercial Data and IT business
unit due to new leadership, differentiated product releases and incremental
increase in service activities. Profitability in the telecommunications
sector will remain challenging and the Company continues to find ways to
reduce exposure to this market.
For the Group, replacing the cash flows and profitability of polysilicon
systems business is proving to be a challenge. Unfortunately for 2013, due
to unrealized previous business strategies, AEG Power Solutions does not
expect to achieve overall sales volumes at 2012 levels nor will Normalized
EBITDA be comparable to 2012 performance. On a segment level for 2013, AEG
Power Solutions currently anticipates the following:
- EES is expected to achieve modest year-on-year revenue growth;
- Solar orders and revenue are extremely difficult to predict in the
current environment; while the Company has a large pipeline in key
growth areas, Solar revenues are likely to remain disappointingly belowprevious year levels;
- POC orders and revenue will remain weak with limited profitability;
Bruce A. Brock emphasizes: 'While we are faced with a difficult economic
environment and unrealized strategies, we are confident that with the
return to our Systems strategies coupled with the strength of our robust
products and our market diversity, we are well positioned for profitable
growth and value creation in the future. AEG Power Solutions is a power
electronics company with decades of industry leading power electronics
technologies providing value added system solutions for our customers in
the basic infrastructure vertical markets across the world.'
-- End of Announcement --
Characters: c.14,700
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
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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