Centrosolar Group AG: Annual forecast downgraded by approximately 20 %

CENTROSOLAR Group AG is downgrading its revenue forecast for the current year from EUR 420 – 450 million to EUR 330 – 380 million, with EBIT positive. The main reason is the reduced market prices, which have come down more sharply than was anticipated in the annual planning.

At the same time, the company is able to look to the second half of 2011 with optimism. The lower prices have temporarily prompted a wait-and-see response among customers. However, they now offer the prospect of attractive rates of return to operators of photovoltaic (PV) systems; from the late summer on, this should translate into corresponding demand especially for roof-mounted solar systems – CENTROSOLAR’s core product. As prices for solar cells have also fallen, CENTROSOLAR can benefit from its flexible procurement strategy.

CENTROSOLAR has made further headway with its international expansion. It has increased revenue profitably in Belgium and the UK. In Italy, financial incentives for solar systems were effectively suspended between March and May, but from June onwards CENTROSOLAR registered a revival in interest in its roof systems now that European systems and roof-integrated configurations attrac t special financial incentives.

In the USA and Canada, the range of products and services has been further widened. Nevertheless, this area incurred start-up losses amounting to EUR 3.0 million in the first half. The launching of new products in the mounting systems area also weighed on earnings. The core business in Europe remains profitable. However, as a result of the price-driven reduction in revenues, the European business was unable to cover the costs of expansion as planned.

Overall, first-half revenue amounted to EUR 150.5 million, with EBIT reaching EUR minus 4.9 million (provisional, unaudited figures). The full First-Half Report will be published on Friday, August 12, 2011.