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Solarworld AG will continue upward trend in 2015

Bonn - The Management Board of Solarworld AG presented the annual group report 2014 as part of a financial statements press conference in Bonn, Germany.

The largest solar manufacturer in Europe and the U.S. confirmed its preliminary figures and provided a forecast for 2015.

After the successful conclusion of the financial restructuring and the acquisition of the production facilities of the Bosch Solar Energy AG in Arnstadt in Thuringia, Germany, SolarWorld was able to embark on a significant growth course in international solar markets. In 2014, groupwide shipments of solar power modules and kits grew significantly by 55 percent to 849 (2013: 548) MW. In the largest single market, the United States, the group was able to nearly double shipments. SolarWorld also achieved strong growth in France, the UK and Japan. In the declining German solar market, the company registered gains in its core business, the sale of modules and kits without large-scale turnkey projects.

Frank Asbeck, CEO of SolarWorld AG: "2014 was a year of milestones. In a short period of time, we have made considerable progress in sustainably leading the group back to the path of growth and profitability. We were also able to secure Qatar Solar S.P.C. as a new anchor investor, which holds 29 percent of shares in our company. "

Consolidated revenue increased in 2014 by 26 percent to EUR 573 (2013: EUR 456) million. Operating earnings before interest, taxes, depreciation and amortization (EBITDA) improved to EUR 108 (2013: EUR -147) million. Effects that resulted from the initial accounting of the assets acquired from Bosch Solar Energy AG and impairment losses from renegotiated supply contracts at better conditions contributed to this. Adjusted EBITDA amounted to EUR 2 million and turned back into positive territory again as expected. Consolidated earnings before interest and taxes (EBIT) increased in 2014 to EUR 62 million too. Earnings before taxes (EBT) grew to EUR 574 (2013: EUR -265) million. This includes the positive result from the successful financial restructuring amounting to EUR 556 million. As at December 31, 2014, SolarWorld's liquid funds had increased to EUR 177 (December 31, 2013: EUR 164) million.

Philipp Koecke, CFO at SolarWorld AG: "As expected, on the operational side before depreciation and amortization, we achieved a turnaround in 2014. EBITDA was again positive also without one-off effects. With this, we have achieved an important goal in the previous fiscal year. This was mainly a result of the many operational activities within the group to increase efficiency and reduce costs."

Forecast for fiscal year 2015 In the current fiscal year, SolarWorld will continue the upward trend and profit from expected growth in the global solar market. The company had a good start into 2015 and increased its groupwide shipments in the first quarter of 2015 by more than 30 percent versus previous year's quarter.

For 2015 as a whole, the group plans to increase its shipments including the business with solar wafers and cells by at least 25 percent, and in this way for the first time exceed the 1 gigawatt mark. In 2015, more than 50 percent of group shipments should be achieved in the strongly-growing U.S. solar market. In Europe, the group is also striving for an increase in shipments and market share, despite difficult conditions. The largest European sales market will likely remain Germany, followed by the UK and France. In the Asia/Pacific region, SolarWorld wants to continue to make gains especially in Japan, where the group is represented by its own sales office.

To achieve the planned sales growth, the group will continue to increase capacity at the production sites Freiberg (Saxony), Arnstadt (Thuringia) and Hillsboro (Oregon, United States). The goal is a groupwide module capacity of 1.6 GW. In addition, SolarWorld is switching its entire cell production to the high-efficiency process PERC (Passivated Emitter Rear Cell). This will allow SolarWorld to offer its customers even higher performance, as well as to further improve the efficiency of its production, thus strengthening international competitiveness.

Worldwide, SolarWorld will continue to serve the quality segment of the solar market and create added value for customers using high-performance technology and offering a range of complete solar power solutions. On this basis, consolidated revenue is expected to rise in 2015 in line with the sales trend by at least 25 percent compared with 2014, to more than EUR 700 million.

The Management Board of SolarWorld AG also anticipates that the implementation of additional operational measures to increase efficiency and cut costs will continue as successfully as before, and that the company - as forecast in early 2014 - will achieve a positive EBIT in 2015, excluding any potential one-off effects. CFO Philipp Koecke: "Just as we successfully mastered our financial restructuring in 2014, so we are confident of achieving a positive operating result as the next milestone in 2015."



Source: IWR Online, 26 Mar 2015

 


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