Power systems provider 3W Power/AEG Power has reported Q3 2012 results that were impacted by overcapacity in polysilicon production but bolstered by growth in the downstream PV inverter market.
The company's Q3 revenue of €81.0 million was down 21.6% compared to Q3 2011 when revenue reached €103.2 million and down 13.7% compared to the previous quarter when revenue reached €93.8 million.
Revenue within its Solar segment, which includes PV inverters, increased 13.3% but was offset by lower revenue in its POC segment, which includes power control systems for polysilicon production plants.
Solar segment sales were boosted due to certain key customers obtaining PV project financing in the quarter to start planned PV projects, according to the company.
However, it noted that overcapacity in the polysilicon production market had seen a slow down in orders as planned expansions have been delayed or halted. This led to an accelerated amortisation charge of €43.3 million in the quarter with a customer order cancellation.
3W Power/AEG Power reported an order intake in the quarter of €89.2 million, down 10.2% year-on-year as a result of the drop in orders for polysilicon systems. Yet orders were up 7.4% primarily coming from the Solar segment.
Its order backlog in Q3 stood at €135.3 million, down 32.4% year-on-year but up 6.7% compared to Q2 2012. The book-to-bill ratio was 1.10.
3W Power/AEG Power expects revenue of €370-€380 million with EBITDA margin of at least 9% for the full-year. In 2013, the company expects to exceed 2012 revenue target, supported by expected growth in revenue from its Solar segment.