Solutronic AG
2010 sees Solutronic post record earnings
Solutronic AG / Key word(s): Final Results 2010 sees Solutronic post record earnings – Sales 2010: quadrupled from EUR4.8m to EUR20.1m – EBIT 2010: massive increase from around EUR0.2m to EUR4.7m – EBIT margin 2010: at high level of 22.5% (2009: 3.4%) – Cautious start to 2011 in line with the general state of the industry – Wieland Scheuerle, CTO of Solutronic: ‘We firmly believe that, on the basis of our business model, we will continue to grow in terms of sales and income even under changing underlying conditions.’ Köngen, 13 April 2011: Solutronic AG, headquartered in Köngen, near Stuttgart, Germany, posted record results in FY 2010. The company quadrupled its turnover to EUR20.1m (2009: EUR4.8m) and massively increased it earnings before interest and tax (EBIT) to EUR4.7m (2009: EUR0.2m). And the EBIT margin also rose to 22.5% (2009: 3.4%). Solutronic generated an annual net profit during the last financial year of EUR2.67m (2009: EUR0.05m). The level of inverter output sold last year amounted to 83 MW compared with 17 MW in 2009. The firm’s liquid assets increased significantly as a result of its flotation, from around EUR0.4m to some EUR6.1m. In the words of Thorsten Soll, CFO at Solutronic, ‘We are extremely pleased that in the year in which we went public – one of the most important milestones in our corporate history – we have posted such an excellent result. The capital brought into the company from our flotation has put us on the right financial footing to allow us to push ahead with growing the company internationally and further expand our development activities.’ Core market of Germany and internationalisation both play big part in result In its core market, Germany, Solutronic profited in the first six months of 2010 from an overall positive trend in the photovoltaic sector and from a significant increase in demand for inverters. For 2010 as a whole, the European Photovoltaic Industry Association (EPIA) calculates on there having been a doubling of the installed capacity to up to 16.5 GW (2009: roughly 7.5 GW). This trend was basically attributable to the reduction in the level of the feed-in tariff, which came into effect on 1 July 2010 and led to an exceptional boom prior to this date. The first half-year of 2010 was also characterised by supply bottlenecks, long delivery dates and to some extent by heavily rising prices for inverters. During this period, Solutronic gained new customers and captured a key position as a preferred secondary supplier of inverters for some customers. ‘During a booming market phase in 2010, we took on an important role for many buyers of inverters and impressed them greatly with our products. For this reason, we are optimistic that, on the basis of our business model and our high quality standards, we will continue to grow in terms of sales and income even under changing underlying conditions,’ says Solutronic’s CTO and company founder, Wieland Scheuerle. During Q3 and Q4 of 2010, Solutronic focused its attention on supplying its clients abroad. This move resulted primarily from the slowdown in the boom and the fall in domestic demand towards the back end of the year. As a consequence, the company realised some 40% of its turnover in the second half of the year from foreign customers. The cautious trend in domestic demand that became apparent towards the end of the year also continued through into the new year. Demand cooled considerably both at the end of Q4 2010 as well as in Q1 2011. This was due to double the amount of orders having been placed during the boom phase, a hesitant stance on the part of customers who were speculating on sinking module prices, and to the early onset of winter in Germany and Northern Italy. In addition, there is still a degree of uncertainty with respect to upcoming or already introduced cuts in state incentives in various European countries, such as France and Italy. Serious and reliable alternative to established inverter suppliers In view of the uncertain regulatory environment, Solutronic is monitoring current developments in the PV sector very closely. The company sees long-term development in the PV sector as being positive and it is certain it will be able to profit sustainably from this trend. This belief also stems from the realisation on the part of the customers that they want to steadily reduce their dependence on individual large suppliers. Solutronic is therefore assuming that it will also gain further market shares in its core market of Germany. ‘Customers are increasingly appreciating us as a young and growing company that offers a serious and reliable alternative to the established inverter suppliers. What’s more, we are continually expanding our international sales activities in markets that are extremely attractive thanks to their regulatory parameters and the number of hours of sunshine enjoyed there. We have already chalked up initial successes at the beginning of the year with the signing of two framework agreements in Australia,’ says Uwe Scobel-Freimüller, CSO at Solutronic AG. In addition to internationalisation, Solutronic continues to focus on intensive development work. Priority areas in the eyes of the board of management are seen to be in expansion of the portfolio to incorporate products in contiguous output classes and in the reduction of production costs in order to counter rising price pressures resulting from growing competition from Asia. Moreover, Solutronic is working non-stop on developing what are known as ‘smart-grid applications’, because, as the Company asumes, inverters are increasingly adopting the role of an intelligent interface in PV installations. Now, as expected, this current year has started quietly owing to the degree of uncertainty about the statutory parameters, Solutronic is expecting a demanding and challenging market for FY 2011. Overall, the management board sees Solutronic as being very well positioned to continue growth in 2011, too, and to grow sales and income very significantly. Due to the current development of the share price it is intended to propose to shareholders to vote in favour of an authorization to buy back shares up to 10 per cent of the issued share capital at the annual shareholders’ meeting on 31 May 2011. The shareholders Scheuerle Vermögensverwaltung GmbH and Dr. Engelhardt, Kaupp, Kiefer Unternehmensbeteiligungen GmbH support this proposal. However, they do not intend to sell any shares to the company after expiration of their respective lock-up. The transactions are intented to be implemented as long as the potential purchase price is below the issue price of EUR 11.00. You can find our complete annual report in German language at http://www.solutronic.de/files/geschaeftsbericht/Geschaeftsbericht2010.pdf . Investors’ Contact Thorsten Soll Public Relations Contact Stefanie Hempel About Solutronic AG Solutronic AG, founded back in 2004, develops and markets transformerless, grid-connected inverters for photovoltaic installations. PV inverters convert the direct current generated by solar modules to alternating current so that it can be fed into the power supply system. In FY 2010, Solutronic generated sales of EUR20.1m and posted an EBIT amounting to EUR4.7m. Solutronic has made a conscious decision not to manufacture the products it develops itself, but to exploit the expertise of electronic manufacturing servicers headquartered in Germany. Based in the small town of Köngen near Stuttgart, Germany, it sees itself as a leading supplier of top-quality, cutting-edge, grid-connected inverters for photovoltaic installations. Its inverters, which cover nominal AC power ratings from 2.5 to 30 kW, are software-controlled and therefore facilitate innovative monitoring and communications functions. Furthermore, they feature high efficiency levels of up to 98% and extremely low failure rates. Thanks to its development expertise, innovative business model and sophisticated quality management regime, Solutronic is in an excellent position to systematically expand its share of the global inverter market. End of Corporate News 13.04.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | Solutronic AG | |
Küferstrasse 18 | ||
73257 Köngen | ||
Deutschland | ||
Phone: | 07024 96128-0 | |
Fax: | 07024 96128-50 | |
E-mail: | info@solutronic.de | |
Internet: | www.solutronic.de | |
ISIN: | DE000A1E8NE7 | |
WKN: | A1E8NE | |
Listed: | Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in Frankfurt | |
End of News | DGAP News-Service |
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