Solon sees 57% sales drop in 2009

The lack of project finance for large-scale utility projects significantly impacted sales for Solon in 2009. The PV module manufacturer announced that sales reached €354 million, a drop of 57% compared to 2008, when sales reached €815 million. Earnings before interest and tax (EBIT) dropped to a loss of €195 million. However, the net loss amounted to €276 million, compared to a net income of €33 million in 2008. Solar module unit sales remained at the same level as 2008.

Solon noted that its Components segment (modules) accounted for 73% of Group sales, compared to 45% in 2008. The System Technology segment dropped to 27% of sales, compared to 55% of sales in 2008. Module prices declined 30% in 2009.

The company manufactured 132MW of modules in fiscal 2009, a decline of 25% compared to 176MW in 2008. Module production had been scaled down in the first half of the year to 39MW. Second half year production reached 93MW.

Continued strong demand in the Components segment is set to continue due to the pull-in affect from the proposed feed-in tariff changes in Germany. Solon said its order backlog was approximately 25MW in Q1, 2010.

The company guided that global demand for modules would increase significantly in 2010, while price declines are expected to slow, compared to 2009. Solon is aiming to increase sales by a double-digit percentage in 2010 and to break even in terms of operating earnings.

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