S.A.G Solarstrom not to issue 2012 sales forecast14. February 2012 | Markets & Trends, Global PV markets | By: Jonathan Gifford
In light of increased financing costs and major European photovoltaic markets facing an uncertain immediate future, S.A.G. Solarstrom AG has today reported that earnings are down for 2011.
In announcing its annual sales figures for 2011, the German photovoltaic integrator revealed that while it will meet sales figures for the year, earnings are down and it will not offer a sales forecast for 2012. The company has blamed "unclear general conditions" in the German and Italian markets for the failure to release 2012 guidance.
In announcing anticipated sales figures of between €260 million to €280 million, Solarstrom stated that it will meet its sales guidance for 2011, however an EBIT target of €16 million to €18 million will not be met. In a statement issuing the results, the company attributed this to increased financing costs, due to the European financial and banking crisis.
It additionally reported that under contracts with investors, it would bear the cost of more expensive financing. Increased interest rates and additional costs through refinancing are being experienced in the present environment.
Under the present regulatory environment in Germany and Italy, S.A.G. Solarstrom had anticipated increased sales volume by 40 to 60 percent, while remaining profitable. However, in the face of recent uncertainties, the group cautioned that it is not immune to "general conditions" and if they were to deteriorate, its sales would follow suit. In saying that, the company said that in the event of a decline in sales, "basic profitability and stability of the Group would be ensured."
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