Aleo Solar posts sharp drop in sales

Aleo Solar AG has now published its financial figures for the first quarter. Based on these figures the sales of the photovoltaics technology manufacturer declined by 58.3% to €31.1 million compared with the same period of the previous year, while the company’s EBIT loss almost doubled from €8.2 to €16.3 million within a period of just one year.

Furthermore, Aleo Solar reported an EBIT margin of –52.4%. The company indicated that the main reason for its weak first quarter is a continued to drop in demand on the important European markets. In addition, the deterioration in prices continues to have a negative impact on the company’s sales and results.

Another reason for the company’s current weak business was due to a lower number of new installations this year. As a result of the political discussions on solar subsidies, there was an increase in the demand for photovoltaic systems in Germany last year – which in turn led to 2 GW of additional installations. But this was not the case this year, with only 775 MW, additional installations of new photovoltaic systems.

Aleo Solar is placing its hopes on business in the United States. Since the beginning of the year the company has offered financing for photovoltaic systems to the tune of $100 million. "With this we see good chances of expanding our business in the U.S. market," said chairman of the board York zu Putlitz.

In Europe, on the other hand, Aleo Solar aims to maintain or perhaps even increase its market share. Nevertheless, in the further course of the year the photovoltaics manufacturer does not expect to see more than modest demand in Germany and the rest of the world.

Aleo Solar is a subsidiary of Bosch Solar Energy. The company has also been affected by the decision of the Stuttgart company to abandon its crystalline photovoltaic technology business. Bosch is now in search of buyers for its nearly 90% share in Aleo Solar.

However, according to information provided by Aleo Solar, the manufacturer’s financing by the parent company has been secured until the end of the first quarter of 2014. After that, the press agency dpa-AFX surmises, Aleo Solar could be threatened with insolvency. According to the quarterly report: "Without a new investor Aleo Solar AG will be put at risk with elapse of the promised financing, based on the representation in the Annual Report 2012."

Translated by Alan Faulcon; edited by Vera von Kreutzbruck.