DAd hoc announcement acc. to Section 15 of German Securities Trading Law (WpHG)

CENTROSOLAR Group AG defied the market trend to achieve a positive third-quarter operating result of EUR 1.7 million (previous year EUR 3.2 million), reducing the first-half losses of EUR 4.9 million by more than one third to EUR 3.2 million (previous year EUR 24.3 million profit).

The third quarter was characterised by a very difficult market environment. The anticipated recovery in demand for solar systems failed to materialise despite attractive rates of return for end customers, and the deterioration in prices from the first half of the year continued in the third quarter. The group’s Q3 revenue of EUR 72.9 million was therefore well down on the prior-year level of EUR 101.7 million. For the first nine months of the financial year, revenue therefore reached EUR 223.4 million (previous year EUR 311.0 million). Earnings per share were EUR -0.35, as opposed to EUR 0.73 in the prior-year period.

Amid all this, CENTROSOLAR has succeeded in continuing to expand its business internationally. In the third quarter, 74% of revenue was already generated outside the domestic market Germany. This contrasts with 64% in the same quarter of 2010.

The long-term focus on quality roof systems made by the company’s own operations in Germany, with local tradespeople acting as the sales partners, has proven to be a stable business model. Paired with a forward-looking approach to cost management, the company is thus able to post a positive operating result despite the difficult market environment. Investment in expanding activities in North America and adding to the mounting systems product range was increased further.

Following weak worldwide demand and the sharp decline in prices, as previously reported CENTROSOLAR now expects revenue for the full year to reach around EUR 300 million. Assuming demand recovers and prices remain broadly stable in the fourth quarter, the company expects that the final quarter, too, will bring a further improvement in the operating result for the year.