S.A.G. Solarstrom AG / Key word(s): Quarter Results
11.11.2010 08:18
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Corporate News
S.A.G. Solarstrom AG - significant sales and earnings growth in the first
nine months of 2010
- EBIT increases by 213.8% to EUR7.5 million, EBIT margin at 5.4 %
- Group sales increase by 82.5 % to EUR139.5 million
- Foreign share of total sales at 48 %
- Whole year 2010 well on target with forecast EUR8 to EUR11 million EBIT
and between EUR190 and EUR210 million sales
Freiburg, November 11, 2010. S.A.G. Solarstrom AG (German security
identification number: 702 100, ISIN: DE0007021008), Freiburg, is
impressively substantiating their growth targets for fiscal year 2010 with
the results of the first nine months. EBIT tripled in comparison with the
same period in the previous year and rose to EUR7.5 million (Q1 to Q3 2009:
EUR2.4 million), and sales also grew strongly by 82.5% to EUR139.5 million
(Q1 to Q3 2009: EUR76.5 million). The period result without minority
interests increased by 124.6% to EUR3.9 million (same period in previous
year: EUR1.7 million). All business areas contributed positively to the
sales and earnings growth. The main drivers were the business areas Partner
Sales and Plant Operation and Services, but the business area Project
Planning and Plant Construction was also able to close the first nine
months on a positive basis, despite considerable start-up costs for major
projects abroad, with an EBIT of EUR2.5 million (Q1 to Q3 2009 -EUR0.3
million).
The S.A.G. Solarstrom Group continued its impressive growth in sales and
earnings in the third quarter of 2010. This was due firstly to the
pull-forward effects of the reductions in the feed-in tariff as part of the
Renewable Energy Act (EEG) in Germany, which were implemented on July 1 and
October 1, 2010. Secondly, however, the well-filled project pipeline in
other European countries is becoming increasingly important.
'We deliberately relinquished windfall gains in the German market and
continued to forge ahead with our foreign projects', says Dr. Karl
Kuhlmann, CEO of S.A.G. Solarstrom AG. 'This is now paying off. The foreign
share of our sales is already 48% after nine months.'
Project Planning and Plant Construction - German market remains very strong
in third quarter
The business area Project Planning and Plant Construction benefited from
the strong German market and was able to compensate for the usual start-up
costs for major projects, in Italy and France in particular this year. EBIT
reached EUR2.5 million (Q1 to Q3 2009: -EUR0.3 million), sales increased to
EUR80.8 million (Q1 to Q3 2009: EUR46.1 million). The EBIT margin was 3.1%.
The margin fluctuates during the year due to reporting date effects, as it
is essentially influenced by the degree of project completion or by the
time of sale. For the entire year, S.A.G. Solarstrom AG is also
anticipating an EBIT margin of over 5% in this business area.
Partner Sales increases EBIT margin from 0.3% to 5.7%
The pull-forward effects in Germany resulting from the reduction in feed-in
tariffs for photovoltaics were highly visible in the business area Partner
Sales. Sales doubled to EUR44.9 million in the first three quarters of 2010
(Q1 to Q3 2009: EUR22.8 million). The share of total sales rose to 32.2%
(same period in previous year: 29.9 %). EBIT increased to EUR2.6 million
(Q1 to Q3 2009: EUR0.07 million). The leap of EUR2.53 million in results
shows that the 40 exclusive partners were able to fully exploit the market
potential. The realignment of Partner Sales, focusing on strong, exclusive
sales partners has thus completely paid off - the EBIT margin achieved 5.7%
in the reporting period, compared with 0.3% in the same period of the
previous year.
Plant Operation and Services benefits from globally increasing service
demand
The business area Plant Operation and Services is documenting their
continued first-class growth trend in the first three quarters of 2010.
EBIT more than doubled with EUR1.7 million (Q1 to Q3 2009: EUR0.7 million)
in the first nine months of 2010, the EBIT margin increased even futher to
15.1% (Q1 to Q3 2009: 13.2%). Sales increased by 96.6% to EUR11.2 million
(Q1 to Q3 2009: EUR5.7 million). Around 80% of these sales are recurring.
The reason for the rapid increase is the rising need for professional
monitoring and forecast services worldwide, which is growing in proportion
to the installed power.
Power Production with increase in margin in the third quarter
In the first nine months of 2010, the EBIT of the business area Power
Production was at EUR0.8 million (Q1 to Q3 2009: EUR1.8 million), and the
EBIT margin was 30.7%. The previous year's period included a one-time
income in the amount of EUR1.2 million from the scheduled waiver of
residual loans for certain installations constructed between 1999 and 2001
as a one-off special effect. Sales increased from EUR1.9 million in the
previous year's period to EUR2.6 million in the first nine months of 2010.
Up to now, the business area was only able to show a below-average profit
from the 4.2 MWp Dehner Garden Center extension to the power plant park.
This was due to the delays in the usual optimization and adjustment work at
the beginning of the year caused by ice and snow, and locally contained
damage to the system, following which it was disconnected for safety
reasons. The below-average turnover was completely consumed by depreciation
and fixed costs. The loss of earnings will be compensated by insurances,
but is not yet included in the result of the first nine months of 2010. The
system was only operated at full load again in the third quarter of 2010
and was able to generate significantly positive earnings - in the
breakdown, the margin increased from 39.6% in the third quarter of 2009 to
43.2% in the third quarter of 2010.
Foreign business perpetuates corporate growth
The Executive Board is expecting strong project business to continue in the
fourth quarter. The Group will forge ahead with medium-sized roof-top
projects in France and the large-scale project with 48 MWp in North Italy.
The Group's expansion and growth policies continue to remain ambitious, yet
always with a careful assessment of the risks involved. One example of this
is the foundation of meteocontrol North America. With the local presence of
their service subsidiary as a 'door opener' for the US market, the S.A.G.
Solarstrom Group will be able to minimize barriers to market entry and
expansion costs, so that in future, USA projects can also be implemented
profitably. The diversification of countries overall balances out
regulatory risks from individual countries.
'Corporate growth could be considerably accelerated by additional capital
or simpler financing processes. However, we are very satisfied overall with
the business performance in the first three quarters, despite a challenging
market environment', says Dr. Karl Kuhlmann.
S.A.G. Solarstrom AG are anticipating sales of between EUR190 and EUR210
million and an EBIT of between EUR8 and EUR11 million for the whole year.
The Executive Board and the Supervisory Board will publish the forecast for
2011 in December 2010.
About S.A.G. Solarstrom AG
S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN:
DE0007021008) of Freiburg i.Br., Germany, are 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 produce solar energy at
their own plants.
S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of
photovoltaic plants, including forecast and energy services, yield reports,
remote and plant 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 are considered pioneers in the solar
industry. Around 175 specialists work at the four locations in Germany and
the foreign subsidiaries.
S.A.G. Solarstrom AG are 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 StraÃe 5
79111 Freiburg
Germany
www.solarstromag.com
Public Relations / Investor Relations
Jutta Lorberg
phone: +49-(0)761-4770-311
Armin Baltzer
phone: +49-(0)761-4770-368
e-mail: pr@solarstromag.com / ir@solarstromag.com
11.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
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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@solarstromag.com
Internet: www.solarstromag.com
ISIN: DE0007021008
WKN: 702100
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Hamburg, München (m:access), Düsseldorf,
Berlin, Stuttgart
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DGAP-News: S.A.G. Solarstrom AG: Solarstrom AG - significant sales and earnings growth in the first nine months of 2010
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