Phoenix Solar cuts profit target

Germany’s Phoenix Solar said on Friday that its operating profit would be lower than expected this year after “the unexpected cancellation by a customer of a major solar power plant in Asia.”

The PV system integrator, which is listed on the Frankfurt Stock Exchange’s Prime Standard, said it would achieve an operating result before interest and tax ranging between a €1 million ($1.14 million) loss and a €1 million profit following the downward correction. The company added that its initial revenue forecast of between €140 million and €160 million remained unchanged. Phoenix Solar had originally anticipated a pre-tax profit of between €1 million and €3 million prior to cancellation of the PV plant in Asia, which will no longer be built.

The company said it nevertheless believed that the project cancellation would not diminish its business prospects mid-term. Phoenix added that it expected its free order backlog to surpass €80 million due to new orders received during the third quarter, compared to €102 million as of June 30. The free order backlog as of the third quarter greatly exceeds last year’s level of €44.1 million in the same period (as of Sept. 30, 2014) and already extends well into the 2016 fiscal year, the company added.