Conergy boosts profit margin

The company’s international share of 50 percent remains at a high level and the system supplier strategy is effective. Its module plant has a threefold increase in output. Nevertheless, the high consulting fees and debt servicing have negatively influenced the results.

In the third quarter of 2010, Conergy managed to nearly double its sales, from €138.8 million to €275.3 million, with personnel costs remaining more or less steady. The sale of the largest solar plant in Germany equipped with its system technology was one of the factors responsible for that trend. Contributing nearly as much to the sales trend was sound international business, spurred on in particular by strong sales in Europe. Conergy also managed to double its gross profit, which rose from €32.7 million to €64.1 million.

Consequently, Conergy’s strategy as an integrated system supplier was also borne out in the first nine months. The company’s solar plant in Frankfurt (Oder) was producing at full steam during the reporting period and managed to increase its output threefold. That also had a positive impact in terms of the share of the PowerPlus modules produced by Conergy, rising from 31 percent to 56 percent during the first nine months. At the same time, there was also strong demand for the company’s inverters. It increased the share of products that it produced itself from 59 percent to 71 percent.

For the first time since restructuring, Conergy has closed out a nine-month report once again with operational figures in the black even though the company is still influenced to a large degree by refinancing-related consulting fees (€12.2 million) and interest payments (€13.4 million). With the aim of reducing this burden, the company has been in talks with its financing banks for several weeks now, trying to reduce its level of indebtedness.