SolarWorld suffers falling 2011 EBIT

The German solar company has reaped reveunes worth €1.06 billion in 2011. While positive, the figure has declined on the previous year, which saw €1.32 billion. The drop has been attributed to global excess capacities and, as SolarWorld stresses, dumping of module prices. It has also cut its dividend to €0.09 per share, a fall from €0.19 last year.

Meanwhile, the company said that based on current estimates, shipments worth 794 megawatts of photovoltaic wafers and modules were recorded. A majority of the growth in shipments took place in its business outside of Germany.

The preliminary EBITDA is €218 million, a drop from 2010’s €281 million. Pursuant to the Impairment of Assets (IAS) 36, SolarWorld made impairment charges to its fixed assets for around €313 million. These impairment charges mostly involved technologically outdated production equipment. The resulting EBIT for the previous fiscal year is, therefore, a paltry €-233 million, compared to 2010’s €193 million.

The EBIT has also been influenced by other factors, such as termination of wafer agreements and impairments to current assets, said SolarWorld. The adjusted EBIT is, consequently, approximately €24 million, compared to the €193 million seen in 2010.