Conergy’s restructuring efforts offset price erosion on return to profitability

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Despite fluctuating regional market demand and continued solar module price declines due to overcapacity, PV manufacturer, Conergy was cash flow positive in the second quarter of 2012. Sales declined by only 7.5% to €145.5 million on an adjusted price and currency basis with the first quarter's total sales volume at 110MW, down slightly from 119MW in the same period a year ago.

A reduction in workforce due to the sale of its PV inverter business to Bosch and lack of impairment charges after Conergy completed its restructuring, supported a small but significant EBITDA profit of €0.5 million in the quarter. EBITDA loss for the first six months of 2012 was €7.1 million. Conergy said it had reduced losses by about 70% year-on-year.

“Despite an unchanged difficult market environment we have managed to return to the black at operating level in the second quarter,” said Conergy CEO Dr. Philip Comberg. “We continue to work hard on bringing Conergy back on track and the results are an important milestone on our way. It clearly shows that our strategic realignment and improved cost structures yield results.”

Conergy also continued to benefit from its decision last year to temporarily stop manufacturing wafers and solar cells and concentrate on module assembly as price erosion slowed and was in the single digit range.

On a regional basis, Conergy sales in the second quarter were predominantly outside of Germany at 79% (€114.9 million). In Germany, Conergy achieved sales of €30.6. Sales in in Italy, Greece and the US were said to have been good, with US sales growing 41%.In the first half of the fiscal year, Conergy reported sales volume of 180MW with revenue of  €243.7 million

“The solar industry and important markets, especially in Europe, were characterized by insecurity concerning subsidy programs and instability as a result of the euro crisis as well as a continuing decline in prices in the first half of 2012. Given that we were able to maintain our position in these surroundings and to improve our results, we are full of hope for the further course of the year,” added Comberg.

However, expected price declines are anticipated to result in full-year sales being lower than in 2011.

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