Phoenix Solar expects slight 2013 growth

Phoenix Solar attributes its slight 2012 positive progress to "successful" restructuring, which saw the company cull a significant amount of its global workforce and organize new financial packages.

It intends to implement further restructuring in 2013 which, as announced this February, will see significant capacity reductions in Europe, a major refocus of efforts on the U.S. and South East Asia and more workforce reductions from 409 employees to just 115.

"With the new strategic direction, we have created the conditions for Phoenix Solar to return to profitable growth. This strategy is being supported by our banks, which have rolled over our financing for another year early with just a few modifications," stated new CEO Bernd Köhler. Phoenix Solar’s previous CEO, Andreas Hänel resigned on February 28.

Köhler continued, "This enables us to press ahead with our international activities, especially in our focus regions of the United States and Asia."

The financials

Overall, Phoenix Solar saw 2012 photovoltaic module sales drop 50% from 257 MWp in 2011, to 130 MWp. This led to consolidated revenues of €155.4 million, a decrease of 60.5% from €393.5 million in 2011.

Of this figure, domestic sales fell 72.4%, from €168.5 million, to €46.4 million, while international sales dropped 51.6% from €225 million to €109 million.

Accounting for 46.6% of revenue, compared to 61.2% in 2011, the Components & Systems segment reaped just €72.4 million, down from the €241 million seen in 2011. Meanwhile, accounting for 53.4% of revenues – an increase from 38.8% in 2011 – Phoenix Solar’s Power Plants segment generated €83 million in 2012, down from €152.5 million in 2011.

2012 EBIT totaled €-31.8 million, an improvement from the €84.7 million lost in 2011. EBIT margin, meanwhile, increased slightly, from -21.5% to -20.5% in the same period. Consolidated loss after tax also improved, from €86.4 million in 2011, to €37.6 million; and earnings per share, from €-11.80, to €-5.10.

Overall, consolidated orders on hand totaled €74.9 million as of last December 31, down 37.3% from €119.4 million in 2011.

The future

Looking ahead to 2013, Phoenix Solar expects to record slight improvements, with consolidated revenues of between €160 million and €190 million, and an EBIT of between €-7 million and €-2 million. In 2014, the company forecasts a positive operating profit on the back of 5 to 9% growth.