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Roth & Rau facing financial losses

German company Roth & Rau AG has announced it will have to post write-downs of around €12.5 million as of December 31, following the surprise announcement by U.S.-based SpectraWatt Inc. that it faces insolvency.

Roth & Rau's Management Board is expected to publish an adjusted forecast following further analysis. Image: Roth & Rau.

SpectraWatt, a solar cell manufacturer and customer of Roth & Rau, has said it will likely have to discontinue trading in the first half of next year due to economic reasons. Consequently, Roth & Rau says it will be unable to meet the level of sales and earnings it had previously forecast for the 2010 financial year as a whole.

Back in November, the company said that in terms of the 2010 business year, it expected an EBIT of approximately €9 million to €9.5 million, while its sales were forecast to hit €285 million. However, in light of this new development, it has said that the Management Board will publish an adjusted forecast following further analysis.