S.A.G. Solarstrom AG plans overseas expansion;reports strong foreign sales

Although the company declined to provide any specific details, it did say the U.S. market is interesting.

Having released its financial results for the first half of the year, the company stated that its foreign sales increased to 38.1 percent, in comparison to the 20.2 percent it saw during the same period last year. As a result, it said that its plans for international expansion are on target. In terms of interesting regions for the company, it told pv magazine that currently Spain, the Czech Republic, Italy and France are particularly attractive.

In terms of its sales figures, the company said it has more than doubled its sales in comparison with the same period last year, from an earnings before interest and taxes (EBIT) of €0.4 million in the first half of last year to €4.5 million this year. It adds that the consolidated profit amounts to around €2.2 million, in comparison to €0.7 million in the same period last year.?

The growth drivers were the business areas Project Planning and Plant Construction, with sales of around €46.6 million, as well Partner Sales with €29.8 million, said S.A.G Solarstrom. In a statement, the company explained: “Both business areas also profited to some extent from pull-forward effects resulting from the reduction in the feed-in tariff in Germany, implemented on July 1.” Its foreign sales additionally contributed to this growth.

For Project Planning and Plant Construction, the company said that sales in this business area were achieved in Germany and Italy, which each accounted for around half of the earnings. It added: “The S.A.G. Solarstrom Group deliberately avoided additional deadweight effects in Germany, so as not to jeopardize foreign expansion and thus the steady increase in corporate growth.” Partner sales, on the other hand, “obtained one of the best results in the history of the company” with an EBIT of €1.8 million (same period in previous year: -€0.4 million) and sales of €29.8 million (same period in previous year: €10.3 million).??

Growth in the business area Plant Operation and Services accelerated significantly in the first half of the year, stated the company, as a result of an “outstanding market position and excellent technical expertise”, particularly of the S.A.G. subsidiary meteocontrol. This, it continued, reflects the “exponential" market growth in the photovoltaics industry. Sales doubled from €3.6 million in the first half of last year to €7.2 million in the first half of this year, with the same high margin of 15.2 percent, which is reflected in an EBIT of €1.1 million (same period in previous year: €0.5 million).? ?

Overall, S.A.G. Solarstrom said it is expecting to see continued dynamic growth in sales and results with a rise in foreign sales for the second half-year. “The fact that we continued to develop our foreign markets and did not attempt to exploit all potential opportunities in Germany will pay off in the second half of the year,” said Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. “We are therefore very confident of achieving our forecast for the whole year of between €190 and €210 million sales with an EBIT of between €8 and €11 million.”