Phoenix Solar reports record module sales and revenue growth

At the end of the first six months, it says that the contribution of the power plants segment came to €149.7 million, or a 41.1 percent share in consolidated revenues. In comparison with the previous year’s period, growth came to 104.5 percent. Additionally, in the first half-year, earnings before interest and taxes (EBIT) rose by €34.3 million to EUR 27 million as against the negative figure of €-7.3 million posted in the first half of last year. The EBIT margin stood at 7.4 percent. Consolidated profit came in at €18.7 million after tax.

??“For Phoenix Solar AG to have achieved more than half of the annual revenues forecast and more than two thirds of targeted EBIT is unprecedented," said Dr. Andreas Hänel, chief executive officer of Phoenix Solar AG. “We owe this development to strong international markets and a special effect," he continued.

In the first half-year of 2010, the German photovoltaics market was dominated by upfront buying effects, says the company. The one-off reduction in feed-in tariffs for solar electricity under the German Renewable Energies Act (EEG) from July 1 onwards caused many customers to bring their decision to buy forward. Strong demand again triggered bottlenecks in the supply of modules and inverters. At the same time, the international markets of France, Italy, Spain and Greece gained considerable momentum.

It continued by saying that orders worth €281.7 million had been placed by the reporting date, which is 55.4 percent higher than on 30 June 2009. Consolidated orders on hand were distributed among the segments as follows: components and systems with €97.5 million (30 June 2009: €95.4 million), of which €29.0 million from international business; power plants with €184.2 million (30 June 2009: €85.9 million), of which €52.2 million from international business. Adjusted for power plant projects under construction and already capitalized, orders on hand came to €156.6 million.

??The company added that from 1 July onwards, domestic demand slowed as expected. As a result, business in the third quarter of the year is likely to be generally much weaker when compared with the second quarter. Despite the substantial reductions in the feed-in tariffs during the year, there is discernible stimulus for demand in the components and systems segment, which presages a surge in demand in the fourth quarter. Power plant projects in international markets, postponed to the second half of the year due to the concentration of capacities on domestic business, will now be commenced as planned.