Despite stronger shipments SolarWorld to miss yearly expectations
SolarWorld AG has released a report on the first half of 2014. In the first six months of the year, SolarWorld increased shipments, compared with the same period of the previous year. Overall, group wide shipments of solar wafers, cells, modules and kits rose by 53 percent to 357 (H1 2013: 233) megawatts (MW). Shipments of modules and kits increased to 333 (H1 2013: 211) MW.
In this segment, SolarWorld started the year's second half with an order book of more than 400 MW. Already, shipments of modules and kits (including shipments in July of more than 90 MW) plus the order book exceed the target for the whole year 2014. Management expected shipments of modules and kits to increase by more than 40 percent, compared with 2013, to more than 767 (2013: 548) MW.
"In July alone, we sold more than 90 MW, a new record for our company. At all production sites in Germany and the United States, we soon will partly re-activate capacities that are not being utilized and further invest to grow organically groupwide in line with demand," explains Dr.-Ing. E. h. Frank Asbeck, CEO of SolarWorld AG.
SolarWorld was able to grow primarily in markets such as the United States, Great Britain, France and Japan. About 81 percent of sales came from outside of Germany.
SolarWorld customers primarily demanded modules, while, contrary to expectations, shipments of complete systems declined significantly. SolarWorld generally sells the largest share of its kits in Germany. Due to the strong decrease of the German market, the group did not succeed in reaching its shipment target for kits here. This shift in the product mix and price reductions in the solar markets considerably affected consolidated revenue, which rose by 13 percent to € 228 (H1 2013: 201) million and remained below the group's expectations.
Earnings before interest, taxes, depreciation and amortization (EBITDA) improved in the first half of 2014 to € 101 million. This result included a one-time, non-cash impairment of € 36 million, which resulted from the agreement with a raw-material supplier, as well as one-offs from financial restructuring and initial consolidation of assets taken over from Bosch Solar Energy AG. Adjusted for these one-offs mentioned above, EBITDA rose to € 1 (H1 2013: "“37) million.
Consolidated earnings before interest and taxes (EBIT) increased in the first half of 2014 to € 81 (H1 2013: "“59) million. Also adjusted for the one-offs mentioned above, EBIT amounted to € "“19 million.
After the company had made redemptions and payments of interest on debt totaling € 34 million at the end of the second quarter as planned, the company had liquid funds of € 159 million, a reduction of € 24 million, compared with the end of the first quarter (March 31, 2014: € 183 million).
While SolarWorld AG will exceed its shipment target for 2014, the company probably will not reach its revenue target of more than € 680 million in light of the shift in product mix and price reductions in the solar market.
For 2014, SolarWorld AG expects a positive EBITDA adjusted for the one-offs mentioned above and the recognized impairment losses. Including all one-offs, SolarWorld expects a positive consolidated result for the year in a three digit million euro amount.
For 2015, SolarWorld AG confirms its forecast that it will be able to achieve a positive operating result.
