Phoenix Solar suffers significant Q3 losses

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On the back of its previously announced restructuring plan, Phoenix Solar says it has saved around €11 million in personnel and other operating expenses. As such, it achieved an improved EBIT and net result, when compared with 2011. Despite this, revenues have significantly decreased.

Overall, Phoenix Solar saw its revenues slipping from €113.2 million in Q3 2011, to just €40.8 million in Q3 2012. Of this its Components & Systems segment generated €19.1 million (Q3 2011: 65.8 million), while the Power Plant Segment delivered €21.6 million (Q3 2011: €47.3 million).

As such, for the first nine months of the year, the company saw revenues dropping over 50%, to hit €125.1 million, down from €253.9 million in the previous year.

EBIT, meanwhile, was more positive at €-4 million, and EBIT margin at -9.8% in Q3, compared to €-13.3 million and -11.9% in Q3 2011. This took EBIT for the first nine months of 2012 to €-18.1 million (2011: €-35.9 million) and EBIT margin to -14.5% (2011: -15.6%).

This led to a net result of €-5.8 million in Q3 2012, up from €-19 million in Q3 2011, and €-22.3 million in the first nine months of the year, compared to €-40.1 million in 2011. And an order backlog worth €127 million, down from €237.2 million in the previous year.

In terms of photovoltaic module sales, the company sold just 35 MW in Q3, compared to 66 MW in the previous year’s Q3, and 131 MW in the first nine months, compared to 159 MW in 2011. "Total module sales Q4 2012 will also decline in a year-on-year comparison reflecting market weakness and on-going restructuring efforts of the sales force," says Phoenix.

For the full year, the company has reduced its revenues forecast from between €210 million to €240 million, to between €170 million to €150 million. It adds, however, that thanks to its restructuring program, which saw 60% of its workforce reduced, its full year EBIT loss will not be significantly lower than that in 2011, and will be in the range of €19 million to €25 million.

Phoenix Solar’s target in 2013 is to return to growth and improve its EBIT. Meanwhile, its "top task" for the coming months is to fill its sales pipeline in Europe, Asia and the U.S.