Phoenix Solar posts Q1 net loss of €5.8 million as its shifts focus to Asia, US

Share

In a statement on Wednesday, the company said results were in line with expectations, attributing the decrease in business to the discontinuation of activities in Germany.

Looking forward, Phoenix Solar said it would increase its focus on strongly growing regions such as the U.S. and Asia. The group’s international business accounted for 62.2% of its consolidated revenue, down from 68.1% a year ago. Revenue from the domestic market grew slightly from 31.9% to 37.8%, year on year, due to work performed on power plant projects commissioned before the company’s decision to shift its focus towards Asia and North America.

Phoenix Solar also saw a much stronger performance from its international subsidiaries, which delivered a 57.1% share of total revenue compared to 42.7% in the same period last year.

The group’s Components & Systems segment saw a 17.1% drop in revenue to €16 million (accounting for 52.3% of total revenue) while the Power Plant unit posted a 21.5% decrease to €14.6 million (making up 47.7% of total revenue).

Phoenix Solar’s loss before interest and tax (EBIT), which grew from €1.1 million to €4.2 million in the first quarter, comprised provisions of €1.9 million earmarked for severance payments in connection with the reduction of personnel necessitated by the decrease in business in Germany. As a result, the expected costs from the company’s repositioning have been fully absorbed in the first quarter.

The group’s EBIT margin stood at -13.9% compared to -2.8% in the first quarter of 2012, which saw a boost in business due to a project in Bulgaria.

"We note that almost all subsidiaries are developing as expected, or better,” said Phoenix Solar CEO Bernd Köhler. “This prompts us to confirm our forecast for the 2013 financial year: we continue to anticipate revenues of between €160 million and €190 million, and a further reduction in the operating loss (EBIT) to a range between €7 million and €2 million, after restructuring expenses."

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

GoodWe launches residential solar carport

07 November 2024 GoodWe has developed a residential solar carport that features its Polaris building-integrated PV (BIPV) panels. The carport, which is available in 4...

Share

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.