Although the solar company recorded a much stronger second quarter in comparison to the first quarter of the year – figures increased 140 percent – at 221.9 million, revenues in the first six months of 2011 were down eight percent year on year. As such, Solon missed its revenue target.
As is the case for many of the German companies, Solon generated most of its sales (79 percent) outside of its domestic market. In terms of sector, 57 percent of its sales were made in its power plant business.
Due to the weak revenues, earnings were also affected. EBIT were particularly hard hit, having posted a loss of 32.7 million (net loss 63.1 million). This is in comparison to the first half of 2010, which saw a 2.3 million EBIT loss (net loss (9.5 million).
Meanwhile, net debt remained high at 402.4 million and working capital decreased by 28.7 million to 184.3 million.
Slowly picking up
As a result of its poor performance, Solon doesnt expect to offset its lost revenues from the first half of this year by the end of 2011. In terms of overall revenue, it forecasts 500 million along with "significant" net and EBIT losses. ??Despite this, the German company does feel the market, particularly in Germany and Italy, is picking up. However, the speed of recovery remains uncertain, it says.
"The business trend in the current quarter indicates a noticeable revival of demand in Germany. First signs of recovery are evident in Italy, too, at least in the industrial rooftop segment, which in contrast to large greenfield installations still offers attractive returns under the new Italian feed-in law," said Solon in a statement.