Struggling German manufacturer aleo Solar has blamed deteriorating market conditions in Europe for another set of disheartening financial figures.
The company is expecting an operating loss of €29.4 million in the first half of this financial year, an increase on the €23.5 million of earnings before interest and tax (EBIT) losses reported in the same period last year.
Overall, the company said it was expecting revenue for the first six months of 2013 to be down almost €100 million on the prior-year period – from €166.4 million to €68.3 million.
Aleo said PV demand in its core European markets in the first half of 2013 had been “muted”, particularly in Germany whhere only 1,488MW of new capacity was installed in the first five months of the year compared to 4,374MW in the same period in 2012.
In countries such as Italy, Greece and Belgium, cuts to government subsidies for solar have also led to a decrease in demand, only partially offset by what aleo said was a “substantial” increase in business in the United States.
In addition to the weak market, the erosion of prices also put severe pressure on the revenue and margins of aleo solar. “Selling prices dropped by around 25% compared with the first six months of last year,” said York zu Putlitz, CEO of aleo solar.
The 2013 half-yearly financial report containing the final figures is expected to be published on 13 August 2013.
As well as falling sales, aleo is also contending with the departure of its major shareholder, Bosch, from the solar business.
The company has been in talks with potential buyers but as yet no deal has been finalised.