aleo solar’s revenue in the first-half of 2011, only fell 16.2% compared with the first six months of 2010, due to shifting sales to international markets as the German market was weak. Revenue reached €232.0 million, compared to €277.0 million in the first six months of 2010. However, EBIT margin plummeted to 1.5%, compared to 10.6% in the same period in 2010. The company cited a 50% decline in factory utilization at recently installed new capacity and ‘rigid pricing policies’ from solar cell manufacturers in the first quarter of the year for the margin collapse.
aleo solar reported that 49.9% of total revenue in the first-half of the year came from outside Germany, compared with just 17.8% in the first half of 2010. Revenue from international markets reached €115.7 million, compared to €49.4 million in the first half of 2010.
“Compared to the extraordinarily strong demand of the previous year, demand in Germany was only moderate in the first half of 2011,” says York zu Putlitz, CEO and CFO of aleo solar. “Additional installed PV capacity plummeted by over 50% in the months of March and April, for example, and an even steeper decline is anticipated for June.” In the first quarter, cell manufacturers’ rigid pricing policies also prevented module prices from falling in tandem with feed-in tariffs at the beginning of the year.
The executive noted that the worldwide surplus capacity of solar cells and modules was continuing to put ‘huge pressure’ on module prices, but this would spur PV installations and ultimately see a return to stable prices in the second-half of the year.
However, the price declines were cited for falling revenue and as such the company is forecasting annual revenue for 2011, of €515 million, down from previous expectations of €560 million.