Module manufacturer, aleo solar said it experienced weaker demand and continued price erosion in the first-half of the year due to changes in the German FiT and continued price erosion. Revenue reached €232 million, a decline of 28.3%, compared to the prior year period.
On a regional basis, aleo solar reported foreign business accounted for 58.3% of sales in the first six months of 2012, compared to 49.9% in the previous year period. However, management warned that demand in many markets would decline as a result of FiT cuts, citing stagnating core European markets, which would put heavy pressure on revenue and earnings.
The company recorded an EBIT loss of €23.5 million, compared to a positive EBIT of €3.4 million in the same period a year ago.
In the first six onths of the year, aleo solar’s module production output reached 197.7MW, compared to nameplate capacity at its plant in Prenzlau, Germany, of 280MW.
With restored certainty over the German FiT, management expects a surge in sales from its domestic market, yet continued industry market conditions are expected to result in lower full-year sales of approximately €370 million, compared to previous guidance of €410 million. The company will end the year on a significant loss, though management did nott allude to the figure.