Germanys centrotherm, which makes production equipment for the solar PV and polysilicon industries, has posted encouraging first half (H1) 2016 financials, placing the firm on course for a break-even year following a strong first quarter.
Overall consolidated revenue for the company which includes thin film and customized equipment was 61.9 million ($69 million), and in its core segment of PV and semiconductor production equipment, H1 sales hit 42 million ($46.8 million), up from 38.4 million in H1 2015.
Having embarked on a cost reduction and efficiency program in 2014 to stave off insolvency, centrotherms turnaround is an encouraging reflection of an uptick in European manufacturing. The firms order book looks healthy at the end of H1, with new orders totaling 85.4 million for the PV and semiconductor segment alone. This is almost treble the orders booked at the same period last year (29.5 million).
Earnings before interest and taxes (EBIT) remained in positive territory for the PV and semiconductor segment, centrotherm confirmed, standing at 1.1 million, but at a consolidated level group EBIT was -1.7 million, falling from 10.6 million in the comparative period. This decline is largely due to reduced revenues in centrotherms silicon segment, where sales were down by more than 60% year-on-year.
Guidance for the remainder of 2016 is wholly positive, however, with a revenue target of between 120-150 million in the companys sights. This would mean breakeven at consolidated level for the firm.
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