Fourth Quarter Results
Conergy Defies Module Price Decline
Despite a module price drop of over 40 % in 2010, German single source solar provider Conergy, Hamburg, achieved group sales of € 755 million in line with company predictions.
Based on preliminary figures, Conergy AG, Hamburg achieved sales of around € 185 million during the fourth quarter of 2011 (Picture: Conergy)
Based on preliminary figures, Conergy AG, Hamburg achieved sales of around € 185 million during the fourth quarter of 2011. “Throughout the year we have seen module prices drop by over 40% in the entire sector,” says Conergy CEO Dr. Philip Comberg. “In this difficult market environment our sales have slightly gone down compared to 2010. However, and thanks to our strong international sales presence, we have been able to increase our sales volumes.”
The company continued to pursue its strategic realignment in the final quarter of 2011. Besides the higher than expected pressure on prices, restructuring costs regarding Conergy’s solar module production in Frankfurt (Oder) had a negative effect on operative earnings before interest, taxes, depreciation and amortization (EBITDA). In 2011, we experienced substantial negative one-off effects due to the strategic reorientation at our plant in Frankfurt (Oder) – and also final special expenditures in the fourth quarter. But we are confident that we have established a good foundation for the 2012 fiscal year through our actions, a year in which we will see a continuing difficult market environment,” continues Comberg.
Delays in project financing within the realm of the financial crisis in Greece, Spain, and Italy in particular, as well as write-downs on receivables and the well-considered decision of the management board to reduce the inventory level at end of the year by selling of stock from long-term supply contracts in particular, all had a negative impact on operational earnings before interest, taxes, depreciation, and amortization.
Conergy is in a process of future-oriented reorganization : “In view of the current market environment, we consciously decided to reduce our stock holdings to a minimum. This further affected profit figures in 2011, but we are going forward into the new fiscal year with lean stock and without any liabilities. At the same time, we were able to achieve a positive operative cash flow.”
Based on preliminary calculations, Conergy achieved an EBITDA of € -80 to -85 million in 2011, which is below the published company guidance of € -50 million and € -55 million due to the reasons specified above. The operating cash flow was positive in the fourth quarter.
For the year 2012, the Management Board expects a modest decline in sales as well as an improved EBITDA such that it is slightly in the black.