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SolarWorld credits US market for H1 performance

Despite suffering year-on-year financial losses in the first half (H1) of 2011, SolarWorld remains confident it will meet its full year guidance. The company, which recorded impressive sequential gains, cites the U.S. as a "significant" solar market.

SolarWorld shipped more photovoltaic products in H1 2011 than H1 2010, despite the difficult market conditions. Image: SolarWorld.

The German photovoltaics company managed to pull itself up from its first quarter (Q1) 2011 slump. However, its efforts still fell short of last year’s figures. Despite this, it is confident demand will increase, thus allowing it to meet its full year targets.

Signaling the company’s market standing, SolarWorld increased shipments from 377 megawatts (MW) in H1 2010, to 381 MW in H1 2011. Additionally, at 196 MW, it raised Q2 2011 shipments of its wafers, solar module and kits from the 185 MW shipped in Q1 2011.

"We have stood our ground well," stated Frank Asbeck, chairman and CEO.

Q2 revenues also increased by 29.7 percent on Q1, from €233 million to €302.1 million. This figure took H1 2011 revenue to €535 million, down from €608.4 million in H1 2010.

While Q2 EBIT rose impressively from €27.9 million in Q1 2011 to €40.2 million, H1 2011 EBIT still fell short of 2010’s H1 EBIT, which reaped €83.7 million. Q2 EBIT margin also increased on Q1 from 12 percent to 13.3 percent. However, H1 EBIT margin took a tumble from 13.8 percent in 2010 to 12.7 percent in 2011.

In terms of net income, SolarWorld generated €12.5 million in Q2 2011, a sequential rise of €2.6 million. H1 figures, on the other hand, dropped from €34.8 million in 2010 to €22.4 million in 2011.

The company goes on to say that the U.S. solar market, in particular, made a "significant" contribution to its H1 2011 results. Overall, SolarWorld grew its H1 foreign shipments from 47 percent in 2010 to 69 percent in 2011.

Asbeck adds that the company expects to see over four gigawatts of newly installed photovoltaics capacity in Germany this year.