Conergy net loss shrinks by 40% Y/Y in Q3 2012

(SeeNews) – Nov 13, 2012 - German solar equipment maker Conergy AG (ETR:CGYK) said today its net loss narrowed by 40% year-on-year to EUR 37.8 (USD 47.9m) million in the third quarter of 2012 despite continuing price pressure on the solar market.

The company’s third-quarter loss before interest, tax, depreciation and amortisation (LBITDA), on the other hand, rose to EUR 31.7 million in the third quarter of 2012 from EUR 27.3 million in the corresponding period last year. This was partially due to a one-off effect of EUR 18 million, resulting from the early termination of a contract with US wafer supplier MEMC (NYSE:WFR). According to the contract, the US company was to supply solar wafers to Conergy over a period of 10 years at pre-set prices.

Conergy also said it managed to narrow its loss before interest and tax (LBIT) to EUR 35.1 million from a loss of EUR 104 million a year earlier. The high prior-year loss was caused by the realignment of the company’s module factory in Frankfurt (Oder) in Germany.

As a result of the continuing price pressure in the solar industry, the further cuts in solar feed-in tariffs as well as due to some postponed projects, the company’s sales in the third quarter of 2012 fell to EUR 108 million from EUR 182 million a year earlier.

In the January-September period of 2012, Conergy's net loss almost halved to EUR 58.1 million from EUR 103.2 million last year. LBIT fell to EUR 49.7 million from 133.5 million, while LBITDA decreased to EUR 38.8 million from EUR 44.3 million a year earlier. Sales declined to EUR 351.7 million from EUR 570.9 million.

On the basis of these figures and taking into account the termination of the contract with MEMC, Conergy has now affirmed its 2012 forecast, which was lowered at the end of September. The company projects LBITDA in the mid-double-digit million euro range. Sales are seen below the EUR 755 million, booked for 2011.

On the other hand, in 2013 Conergy plans to further expand in Thailand, where it recently introduced a 21 MW project.

(EUR 1.00 = USD 1.26)

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