The Germany-based manufacturer has revised its revenue forecast down from a projected 560 million to 515 million. The reason cited was faster than expected revenue declines.
In the first six months of 2011, aleo generated 232 million in revenue. This figure represents a 16.2 percent decline on the first half of 2010, which saw a revenue of 277 million.
The companys EBIT for the first half of 2011 took a massive tumble from 2010, falling from 29.3 million to 3.4 million. The companys EBIT margin fell accordingly from 10.6 percent to just 1.5 percent.
Production volume, however, increased by 28.8 megawatts (MW) on the same period last year, to reach 161.6 MW.
"Compared to the extraordinarily strong demand of the previous year, demand in Germany was only moderate in the first half of 2011," explained York zu Putlitz, CEO and CFO of aleo solar.
He added: "Additional installed PV capacity plummeted by over 50 percent in the months of March and April, for example, and an even steeper decline is anticipated for June."
While aleo saw demand in Germany fall, it recorded impressive growth internationally.
In comparison to the first six months of 2010, which saw 17.8 percent or 49.4 million of the manufacturers revenues being generated outside of its domestic market, the first half of 2011 saw this jump to 49.9 percent or 115.7 million.
"As in the first three months of the year, we largely compensated for the quiet business in Germany in the second quarter with growth on the international photovoltaic markets, which shows the success of our internationalization strategy," zu Putlitz continued.
The solar module manufacturer believes that demand will be boosted and prices stabilized throughout the rest of the year on the back of the current high inventories, which are creating "huge" price pressure.