Centrosolar positive as it announces increased revenues and strong international growth

The company says it achieved a revenue of €100 million in the third quarter of this year, which is a 25 percent increase on the same period last year. It adds that almost two-thirds of this was generated outside of Germany, with international growth having reached 85 percent over the same quarter a year ago. In total, it says it is 53 percent up on the previous year period.

Centrosolar goes on to say that having achieved an operating result before interest and taxes of €24.3 million, it has reached its current financial year target, which it it had previously already upgraded “substantially”.

The company attributes its success to an increased international presence. It explains that in Italy, for instance, revenue was more than trebled compared with the prior-year quarter and accounted for about 14 percent of total revenue in the past quarter. Furthermore, it says that its French activities saw its revenue share increase to almost one-third. In terms of the future, Centrosolar states that it will focus on the U.S., Benelux and the UK.?

While its overall financial results are rosy, the company has not been without its hiccups. It says the operating result for the third quarter was diminished in particular by temporary bottlenecks in the procurement of cells and raw glass. It explains that the resulting higher procurement costs are reflected in a lower gross margin than for the first half. A product change within mounting systems and an increase in module manufacturing capacity from 155 megawatts peak (MWp) to almost 200 MWp also represented “temporary burdens”.

It says that third-quarter earnings were in line with the expectations voiced at the end of the first half of the year, while the assessment of the situation is now “even more positive”. It states that the upper figures for the bandwidths will “probably be exceeded” for revenue (€370 million) and “probably achieved” in the case of earnings (€28 million). In view of the likely price reductions at the start of 2011, it says a “conservative” approach to purchasing and sales is planned for the fourth quarter of this year. ??

The regulatory trend towards higher subsidies for roof systems than open-site systems in markets such as Germany, the Czech Republic and Italy, says the company, “chimes” with its strategic position, with an area-wide sales network in the main markets for photovoltaic roof systems and a flexible purchasing policy.

It says that it is likely to profit from the general easing of the situation on general procurement markets, whereas further opportunities for growth are arising in the its specific sales markets. Centrosolar concludes by saying that it therefore anticipates further revenue growth and a “thoroughly satisfactory” margin in the next financial year.