Centrosolar posts EUR 4.2m loss in Q3 2012, cuts outlook

(SeeNews) – Nov 9, 2012 - German solar energy systems maker Centrosolar Group AG (ETR:C3O) reported today a third-quarter net loss of EUR 4.2 million (USD 5.3m) versus a net profit of EUR 4.2 million in the same period of 2011 and reduced its revenue outlook for 2012.

Centrosolar now expects its 2012 revenue to end up between EUR 215 million and EUR 225 million instead of the previously forecast EUR 250 million. The firm sees a loss before interest and tax equaling the previous year's figure of EUR 13.2 million.

The third-quarter loss was mainly a result from the reduced earnings of the company’s glass department due to a weak worldwide demand, a scale back in plans and the bankruptcy of two important glass costumers in the past two quarters.

Centrosolar’s photovoltaic division, on the other hand, managed to increase its international revenue by 29% year-on-year in the third quarter despite the difficult situation in the sector caused by falling prices and increased competition.

The company’s third-quarter revenue fell 24% to EUR 55 million.

Centrosolar said it anticipates that the fourth quarter will bring further losses due to the weak overall demand for solar glass and a slower PV business in the winter months.

Moreover, the company’s Swiss division was found to be in need of impairment of EUR 3.3 million with effect from September 30, 2012. In addition, deferred tax assets of EUR 3.9 million were reversed.

(EUR 1.00 = USD 1.27)

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