Roth & Rau reduces 2012 outlook, to cut further jobs by year end

(SeeNews) – Nov 22, 2012 – German solar technology company Roth & Rau AG downgraded its 2012 financial outlook due to the weak solar market and said it plans further job cuts by the end of the year.

The company announced on Wednesday that it is not able to keep its full-year forecast for positive earnings before interest, tax, depreciation and amortisation (EBITDA) and now projects a loss before interest, tax, depreciation and amortisation (LBITDA) of EUR 15 million in 2012 as well as a loss before interest and tax (LBIT) of EUR 33 million.

The company's 2012 revenue outlook was reduced to EUR 140 million from the previously-expected EUR 170 million.

In addition, Roth & Rau, which is owned by Swiss Meyer Burger Technology AG (SWF:MBTN), also said that it plans to reduce the number of its employees by 900 by the end of 2012 from 1,348 in 2011 as no recovery of the solar market is expected for the beginning of 2013.

However, the German company also announced that the sale of its Chinese unit Precision Tooling & Solar Technology and the management buy-out at American Romaric Automation Design marked the end of its restructuring, which was announced at the beginning of 2012.

The aim of the restructuring measures was to significantly reduce the complexity of the Roth & Rau's structure, to improve synergies with Meyer Burger and to dispose of loss-making subsidiaries.

(EUR 1.00 = USD 1.27)

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