SolarWorld expects losses of more than €0.5 billion

Based on current estimates, the German photovoltaic company will record losses after tax of €520 million to €550 million.

The management board also announced the loss of one half of its share capital last night. As such, 2012 equity capital is expected to total between €-20 million to €-50 million.

SolarWorld blames one fifth of its poor performance on negative effects on earnings in connection with business developments in 2012; the remaining losses were attributed to adjusted valuations for shares in affiliated businesses and for subsidiaries/loans.

In light of its expected losses, the company has announced an extraordinary general meeting. The date has not been published, however. "It is expressly noted that any balance sheet adjustments in the context of the annual audit may significantly modify the estimates noted above," it said in a statement released.

SolarWorld is currently under enormous pressure. In January, the Bonn-based company announced a number of severe cuts and extensive restructuring of its finances. Since then, it has been negotiating with the banks to restructure its debts. Early this month, the Dutch fund of the SolarWorld management set the company the deadline of April 15 to publish its plans. After the deadline, there were no further consequences, however.

At the end of March, Germany’s Centrosolar also announced a loss of more than half its share capital. Before that, Conergy and Q.Cells – which was taken over by Hanwha – shared this fate.

Translated and edited by Becky Beetz.