German Conergy to report operating loss in 2011

(SeeNews) – Jan 25, 2012 - German solar technology producer Conergy AG (ETR:CGY) said yesterday it registered a loss before interest, tax, depreciation and amortisation (LBITDA) of between EUR 80 million (USD 104.2m) and EUR 85 million in 2011 based on preliminary figures.

Conergy had expected LBITDA at between EUR 50 million and EUR 55 million. However, the company foresees a substantial one-off costs from the restructuring of its plant near Frankfurt on the Oder, Germany. Conergy's results were also burdened by delays in project financing due to the sovereign debt crisis as well as write-downs on receivables.

In addition, the company's management decided to reduce inventories, CEO Philip Comberg said, explaining that the move affected the 2011 figures but Conergy will face the new year with no liabilities and with lean stockpiles.

The company's sales were in line with its forecasts. They stood at EUR 755 million for the full 2011 and at EUR 185 million for the fourth quarter. The CEO pointed out that the 40% decrease in prices in 2011 weighed on sales, but the company managed to register good figures thanks to its strong international presence.

Conergy expects in 2012 a slight decline in sales but improvement in earnings before interest, tax, depreciation and amortisation.

(EUR 1 = USD 1.302)

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