Phoenix Solar warns module price declines continuing; takes margin hit

Major solar systems integrator Phoenix Solar AG has warned that although its revenue guidance of around €520 million for 2009 remains, EBIT guidance of approximately €31 million will not be achieved due to the continuing pressure on PV module prices.

Phoenix Solar said that prices for modules had not stabilized as expected as customers continued to hold back on purchases. The company was also impacted by the need to increase the right-down of the value of module inventories.

While module prices continued to fall, Phoenix Solar still expects to make a profit for the year but will not give EBIT guidance until prices stop falling.

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