3W Power the holding company of PV inverter supplier, AEG Power Solutions Group reported a 50.7% decline in its Renewable Energy Solutions (RES) business third quarter results, partially due to the sale of subsidiary, Skytron in July, 2014 to First Solar.
The company reported RES revenue of €6.1 million in the quarter, down 50.7% compared to the prior year period and down from €9.4 million in the second quarter of 2014.
The RES segment reported an improved negative EBITDA of €3.1 million, compared to a negative €4.5 million in the previous quarter.
New orders in the RES segment were €4.6 million, compared to orders of 9.9 million in the previous quarter and down 67.1% year-on-year. The company cited the order decline to be due a weak PV market and geopolitical issues in Eastern Europe as well as business sell-off’s and regional.
However, group cash and cash equivalents strengthened to €36.8 million at the end of the third quarter, due to asset sales and restructuring efforts including restructured bonds.
The company guided group revenue for 2014 to be in the range of €200 to €210 million in combination with a negative EBITDA.
Jeffrey Casper, CEO said, “Although considerable progress has been made, a lot remains to be done. Additional reduction of overhead costs, business process redesign in the core industrial business and continuous improvement are main tasks for the Company's final recovery. Overall, however, our new COO Dietrich Ehrmanntraut and I are fully convinced that our Group will accomplish a successful turnaround in both operational and financial terms.”
Group revenue in the third quarter was €47.6 million and a negative EBITDA of €1.1 million.