Hamburg-based Conergy AG has published its results for the 2011 financial year today. Despite difficult market conditions, the company increased its worldwide sales volume by 7% to 393 MW (previous year: 368 MW). Conergy increased quantities by 44% outside of Germany, and more than doubled sales volume in Asia. The solar company was thus able to partially compensate for the more than 40% price decline for solar modules in 2011. Sales were at € 754 million in 2011 (previous year: € 914 million). Conergy has been able to profit from its early globalisation strategy, with international sales increasing by 5% to reach € 555 million (previous year: € 530 million). The company now generates almost 74% of its turnover outside Germany.
As previously announced in its preliminary figures in February 2012, unexpectedly strong price pressures and restructuring costs incurred by the reorientation in the solar module manufacturing plant in Frankfurt (Oder) had a negative effect on earnings before interest, taxes, depreciation and amortisation (EBITDA). Delays in project financing as a result of the financial crisis, write-offs on receivables and the decision of the Management Board to reduce inventory by selling off stocks at year end put the EBITDA further under pressure. EBITDA were therefore at € -84 million (previous year: € 30 million).
Earnings before interest and taxes (EBIT) were pressured by significant impairments on the wafer and cell production amounting to € 71 million as a result of the strategy shift in module manufacturing at Frankfurt (Oder). The EBIT was therefore € -183 million (previous year: € -14 million). Net income amounted to € -162 million (previous year: € -45 million). This figure includes a one-time income from the capital increase in July 2011 and the related waiver by the lenders of € 68 million in debt. Net debt fell from € 255 million to just under € 118 million as a result of the capital measures taken in summer 2011. A positive sign was the drop in working capital from € 111 million to € 81 million year-on-year.
“Despite the difficult economic environment in 2011, we have overcome many obstacles and set the course for Conergy's future success", said Conergy CEO Dr. Philip Comberg. "Alongside the refinancing, main factors have been our continued focus on photovoltaic, our reorientation with regard to manufacturing and the sale of voltwerk to Bosch. We are optimistic that we will profit from these measures in 2012 and will be able to focus on our strengths again."
As a system supplier, Conergy will henceforth be concentrating on its sales network, its strong position in the international market and the ever-more-important service business.
"In 2012, we will be continuing to focus on the growth markets Asia and North America", said Comberg. "The last year has shown us that we already have an excellent position in South East Asia, India and the Middle East. We have a strong project pipeline in these regions. In Europe, however, the future of solar is in rooftop installations. Conergy has the right products for this segment, along with many years of experience. And above all it has very good access to this segment thanks to its closely-knit sales network.”
In 2012, the Management Board expects sales to be lower year-on-year and the EBITDA to improve to a low positive figure.