DGAP-News: S.A.G. Solarstrom AG: 2010 result is an impressive reflection of the success of international expansion
(firmenpresse) - DGAP-News: S.A.G. Solarstrom AG / Key word(s): Final Results
S.A.G. Solarstrom AG: 2010 result is an impressive reflection of the
success of international expansion
31.03.2011 / 07:39
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S.A.G. Solarstrom AG: 2010 result is an impressive reflection of the
success of international expansion
- Sales swelled to EUR201 million (+32%), overall performance swelled to
EUR253 million (+64%)
- EBIT growth at EUR13.1 million (+55%) borne by all business areas
- Proposal for dividend 12.5 Eurocents
Freiburg, March 31, 2011. S.A.G. Solarstrom AG (German security
identification number: 702 100, ISIN: DE0007021008) impressively documented
the success of the Group's international expansion with the results for
2010, despite an increasingly difficult market environment. Sales increased
to EUR201 million (2009: EUR152.9 million), EBIT to EUR13.1 million (2009:
EUR8.5 million) and number of employees from 163 to 185 at December 31,
2010. 62% of the overall performance of EUR253 million was achieved abroad.
The main drivers of sales growth were the business areas Project Planning
and Plant Construction and Partner Sales, with Partner Sales benefiting to
a greater extent than the other business areas from pull-forward effects in
the German market. The S.A.G. Group was able to considerably improve its
EBIT margin to 6.5% (2009: 5.6%). For the first time, the two top-selling
business areas achieved an EBIT margin above 5%. The group annual result
was EUR6.3 million (2009: EUR7.7 million) due to a significantly higher tax
burden than in the previous year, a sign of the successful process of
coming to terms with the company's past. Based on the very good results for
2010 and the positive business trend, the Executive Board and the
Supervisory Board will propose a dividend of 12.5 Eurocents per share to
the Annual General Meeting.
All business areas were able to significantly improve both sales and profit
in 2010.
Project Planning and Plant Construction
This top-selling business area once again delivered the highest operating
result. With sales of EUR123.8 million (2009: EUR108.2 million), the
business area achieved an EBIT of EUR6.7 million (2009: EUR4.9 million)
and, with 5.4%, thus attained an EBIT margin of over 5% for the first time
(2009: 4.5%). It should be taken into account that the predominant part of
the difference between sales and overall performance concerns the major 48
MWp project in Italy, which was begun in 2010 and is scheduled to be
completed in 2011. This large-scale project will thus have a major effect
on the growth of this business area in 2011. With further international
expansion, the S.A.G. Group is also able to absorb regulatory changes in
individual markets.
Partner Sales
The business area Partner Sales benefited to a greater extent than the
other business areas in 2010 from pull-forward effects in the German
market, resulting from the amendment to the Renewable Energy Act (EEG). The
business area was able to convert the strong demand and increasing scarcity
of components into satisfactory sales and profit growth. Sales increased to
EUR58.9 million (2009: EUR33.8 million), while EBIT quadrupled to EUR3.3
million (2009: EUR674,000). The business area increased the EBIT margin
significantly from 2% in the previous year to 5.6% in 2010. The current
earning potential of the business area that made a loss for so many years
can be attributed to the reorganization of the sales structure and the
extensive shift from trading transactions. The setup and expansion of the
Partner Sales network abroad, as well as the evolution of exclusive sales
partners in Germany into service partners also holds further margin
potential for future years.
Plant Operation and Services
Sales in the business area Plant Operation and Services increased by 76% to
EUR15.3 million in 2010 (2009: EUR8.7 million) and benefited particularly
from the growth of newly installed power worldwide in the remote monitoring
of photovoltaic systems. EBIT doubled to around EUR2.5 million (2009:
EUR1.2 million), and the EBIT margin improved at a high level to 16.1%
again (2009: 14%). The launch of new products in 2010, such as the data
logger 'Weblog Comfort', which enables own consumption from photovoltaic
systems to be controlled, also make attractive sales and earnings
contributions likely in the future.
Power Production
Despite below average irradiation and weather conditions in 2010, sales in
the business area Power Production rose by 36% and to EUR3 million due to
the increase in the Group's own portfolio as a result of the inclusion of
the 4.2 MWp system in Rain am Lech.
EBIT also rose by 34% to EUR0.7 million, adjusted by the non-recurring
income from the scheduled waiver of residual debt for system financing as
part of the 100,000 Rooftops Program, received in 2009. The profit remained
slightly below expectations, due to damage to a system, which has in the
meantime been rectified. Revenue from the 6.8 MWp from the project in
Stribro, Czech Republic, which was taken over into the S.A.G. Group's own
portfolio in November 2010, is not included in this business area, but is
incorporated into the financial result, with a further 4.1 MWp of S.A.G.'s
own portfolio, which is also entered in the balance sheet according to the
equity method.
Sustainable dividend policy and continuous leadership
In light of the continued positive business trend and the satisfactory
consolidated result for fiscal year 2010, the Executive Board and the
Supervisory Board of S.A.G. Solarstrom AG will propose a dividend payment
in the amount of 12.5 Eurocents per share to the Annual General Meeting,
thus underscoring the sustainability of their dividend policy.
The Supervisory Board also decided, in its meeting of March 29, 2011, to
extend the Executive Board's contracts in order to ensure stability and
continuity in corporate development and thus to secure continuation of the
successful growth trend, which has been and continues to be decisively
influenced by the acting Executive Board.
Growth substantiated with forecast for 2011
'Despite the announced reductions that have already been adopted in certain
European countries, we are reckoning with sales of between EUR260 and
EUR280 million and an EBIT of between EUR16 and EUR18 million in 2011',
says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'As a roof-top
specialist, we are very well positioned, even under the new market
conditions in Europe. And we will of course continue to push ahead with our
expansion in other countries, such as the US. Development of the service
business also offers us new opportunities and earnings potential'.
About S.A.G. Solarstrom AG
S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN:
DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent
provider of high-quality photovoltaic plants configured to customers'
individual needs. The group constructs efficient plants of all sizes both
in Germany and abroad. S.A.G. Solarstrom AG also produces solar energy at
its own plants.
S.A.G. Solarstrom AG's service portfolio covers all services involved in
the entire life cycle of photovoltaic plants, including forecast and energy
services, yield reports, and remote maintenance, as well as insurance and
financing. The group thus offers a comprehensive value chain in
photovoltaics, from yield reports, planning, construction,operations, and
monitoring to optimization, repowering, and deconstruction.
Founded in 1998, S.A.G. Solarstrom AG is considered a pioneer in the solar
industry. Around 190 specialists work at the four locations in Germany and
the foreign subsidiaries.
S.A.G. Solarstrom AG is listed in the General Standard of the Frankfurt
Stock Exchange as well as according to the rules and standards M:access of
the Munich Stock Exchange.
Further information: www.solarstromag.com
Contact:
S.A.G. Solarstrom AG
Sasbacher Straße 5
79111 Freiburg
Germany
www.solarstromag.com
Public Relations / Investor Relations
Jutta Lorberg
phone: +49-(0)761-4770-311
e-mail: pr(at)solarstromag.com / ir(at)solarstromag.com
End of Corporate News
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Language: English
Company: S.A.G. Solarstrom AG
Sasbacher Str. 5
79111 Freiburg
Deutschland
Phone: + 49 761 4770 0
Fax: + 49 761 4770 555
E-mail: mail(at)solarstromag.com
Internet: www.solarstromag.com
ISIN: DE0007021008
WKN: 702100
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München
(m:access), Stuttgart
End of News DGAP News-Service
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117759 31.03.2011
Datum: 31.03.2011 - 07:39 Uhr
Sprache: Deutsch
News-ID 33656
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