3W Power down 3% year-on-year, but up 14.6%

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

3W Power, the holding company of AEG Power Solutions (AEG PS), today issued preliminary results for Q1 2012.Order intake was down 3% year-on-year, but up 14.6% compared to the previous quarter. Revenues for the first quarter were also down by 3% at €83.5 million (Q1 2011: € 86.4 million) and EBITDA was €-2.8 million (Q1 2011: €2.3 million), which includes one-time expense items of €1.8 million. The one-time items consist of restructuring charges for the telecom converter business, write-off of receivables due to a solar customer insolvency and certain legal fees.

“Q1 was negatively impacted by a temporary delay in solar projects due to the financial crisis and by underperformance in our telecom converter business. With resuming growth, our RES business segment will return to double-digit EBITDA margins and with the restructuring of our DC telecom converter business unit (CVT), our EES business segment will return to positive EBITDA margins in Q2. In addition, shared cost will be under strict scrutiny for the remaining quarters. As of Q2, AEG Power Solutions will be back on its profitable growth track”, comments Horst Kayser, CEO of 3W Power/AEG Power Solutions.

The company states the RES segment as a whole was up 15% year-over-year. Orders for the power controller department in Q1 2012, has been credited to the sale of AEG PS’ Thyrobox M power supply solution to a poly plant in Asia and a poly plant in EMEA in 2012 and 2013 respectively. In addition, AEG PS has booked an order for the Thyrobox H2 hydrolysis power supply for a 6MW hybrid power plant in Northern Germany. It will remain a strategic priority of RES to diversify the power controller business beyond polysilicon applications. While this order intake is encouraging, the continued weakening of the spot market for polysilicon for its customers indicates an oversupply situation that will have to be closely monitored over the next few quarters.

Orders in the solar business unit for Q1 2012 were at a similar level for Q1. As previously announced, orders in India are already above 2011 full year levels and orders from growth regions (Eastern Europe, India, Southern Africa, USA) are expected to offset and over-compensate expected market contractions in Western Europe.

RES revenue for the quarter was € 33.0 million compared to €38.2 million in Q1 2011. As sales in the power control systems business unit were up 40% in Q1 2012 compared to Q1 2011, RES' revenue decline has been attributed to an expected revenue decrease in the solar business unit in Q1 2012 compared to the same period last year after low order intake in Q4 2011. The company claims the shortfall was specifically caused by a delay in deliveries to large key customers, due to customer difficulties in securing financing given the European debt crises. However, deliveries resumed towards the end of Q1, which should bode well for Q2 and beyond.

In energy efficiency solutions (EES), the group achieved revenue of €50.5 million in Q1 2012 (Q1 2011: €48.2 million).

Order intake for Q1 2011 in EES was 16% below previous year Q1. 3W Power blames the shortfall on traditionally lower Q1 telecom activity and additional cutbacks and delays in certain telecom customers' investment plans. Orders are expected to recover in Q3 and Q4 for telecom sales to reach previous full year levels.

EBITDA for EES in Q1 2012 was €-0.8 million (Q1 2011: €1.1 million). However, Q1 2012 EBITDA broke-even, excluding the restructuring charge of €0.9 million for the telecom converter business. EES will return to positive EBITDA in Q2 as 3W Power expects gross margin will continue to improve due to product cost improvements and above-average growth of profitable service business.

Kayser reports, “We remain focused on executing our profitable growth. We are excellently positioned both regionally and technologically to capture opportunities in the renewable markets, especially in growing global solar markets and the trend towards electrical energy storage and smart grid solutions. For 2012, the company continues to anticipate growth in its key markets and reaffirms its expectation of revenues in the range of €430 to €460 million and an EBITDA margin in the range of 9% to 11%.”

9 December 2021
The Smart Energy Council is hosting Australia’s second Virtual Smart Energy Conference and Exhibition on Thursday, 9 December 2021. This event will show that the industry powers on despite COVID-19 and we are standing together undeterred in spirit. Bringing our global community together using the latest technology.
13 January 2022
Intersolar North America and Energy Storage North America “Come Together” for the first time in Long Beach, CA—connecting installers, developers, utilities, technology providers, policy makers, and key stakeholders from around the world to advance the clean energy future. With best-in-class conference programming, integrated exhibits and pavilions, and the live Solar Games installer competition, #isnaesna21 will showcase the industry trends, innovative solutions, and emerging talent transforming the solar, energy storage, and e-mobility markets. Register today to redeem our exclusive offer for PV Tech readers—free expo hall or 20% off full conference pass.
1 February 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.

Read Next

December 7, 2021
Solar developer ib vogt has signed a €40 million (US$45 million) syndicated loan agreement with its long-standing German bank partner Commerzbank AG to support its international growth strategy
December 7, 2021
The US and China will account for a combined 57% of total forecasted solar capacity additions through 2030, with the countries adding 151.3GW and 436.9GW of solar capacity, respectively. Both countries have risks to this development, however, with the US needing to overcome trade and tariff problems, while China needs to ensure the reliability of PV production
December 7, 2021
Tesla is being investigated by the US Securities and Exchange Commission (SEC) following a claim that the company did not appropriately inform its shareholders and the public about potential fire risks from its solar systems, according to a report by Reuters.
December 7, 2021
JinkoSolar is forecasting that more than 25% of its module shipments next year will be attributable to its n-type TOPCon module range.
PV Tech Premium
December 7, 2021
PV Tech Premium speaks to Dany Qian, vice president at JinkoSolar, to get the inside story about the ‘Solar Module Super League’ member’s 16GW n-type expansion and plans to take the lead in TOPCon.
PV Tech Premium
December 6, 2021
PV Tech Premium breaks down the key schemes and incentives that exist for companies that want to invest in India's growing solar market

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal