Meyer Burger halts control transfer proceedings as Roth & Rau issues profit warning for Q3

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

Citing difficulties in the market environment and customer project delays as a reason for the company’s poor third-quarter figures, Roth & Rau has reported an expected loss at EBIT level of €76 million for the three-month period. In response to this news, Meyer Burger has decided to cease steps it had been taking towards a control and/or profit transfer agreement, while Roth & Rau takes steps to regain financial stability.

According to the company’s news release, Roth & Rau will place “all of its efforts into adapting its cost and organisational structures as quickly as possible to secure a rapid, sustainable improvement in its earnings and financial position.”

Peter Frankfurter, CFO of Roth & Rau, commented, “Given the significant downturn in new orders in recent months and the substantial losses incurred at Roth & Rau AG, we see Meyer Burger's decision as an opportunity to focus even more closely on our strategic realignment and targeted turnaround”.

Consolidation of results

Meyer Burger’s balance sheet continues on its steady course to meeting 2011 expectations; 2011’s net sales are expected to be in the region of CHF 1.2 billion with an EBITDA margin of between 23% and 25%. However, this figure excludes those of Roth & Rau, which has started to address the massive losses it has incurred by implementing reduced working hours at its production facilities.

Consolidated financial statements for 2011 issued by Meyer Burger Group included Roth & Rau’s figures, citing the completion of the takeover of Roth & Rau AG as taking place around the beginning of August 2011. The financial woes being experienced by Roth & Rau have led Meyer Burger to question the value assigned to the former’s assets, citing that: “[t]he value adjustments on trade receivables and inventories and the depreciation on intangible assets mentioned in the profit warning by Roth & Rau have been considerably impacted by the changed market environment.”

Although Meyer Burger’s balance has not been hugely affected by Roth & Rau’s third-quarter figures, the former will have to carry a proportional loss of approximately €14 million from July to 8 August 2011, as well as any further losses incurred for the fourth quarter of 2011.

Meyer Burger Group plans to conduct an impairment test on the goodwill of Roth & Rau in relation to the latter’s end-of-year financial statement for 2011. It is expected that impairment on goodwill of the order of €40 to €60 million may be required, and Meyer Burger will write off this fee as a one-off charge on the income statement for 2011.

Roth & Rau plans to publish an in-depth interim report on November 15, which will detail its financial earnings and losses for the nine-month period from January 1 to September 30, 2011. Nevertheless, the company has warned that a possible further loss of up to €15 million for the fourth quarter of 2011 should not come as a surprise at the end of the year.

19 July 2022
As New South Wales is gearing up to become a renewable energy superpower, an exciting clean energy event is coming to Sydney. Energy Next is a free-to-attend industry event focusing on the latest renewable energy and energy management technologies, which will be held from 19-20 July 2022 at the ICC Sydney in Darling Harbour. Organised by the same people behind the country’s largest clean energy event, All-Energy Australia, Energy Next will bring a quality exhibition and technical session series to NSW. Energy Next will also host the Clean Energy Council’s Solar Masterclass with a program developed for solar designers and installers. Across two days, Energy Next will provide an extensive exhibition, workshops and networking opportunities for those working in the renewable energy industry to meet with leading suppliers, discover the latest technologies and gain an understanding of how to successfully launch new clean energy projects.
21 July 2022
The rooftop solar PV market is set for significant growth, but installers are being held back by complicated design software that is slow, cumbersome and fails to take into account rooftop shading, module compatibility and energy storage. Huawei’s SmartDesign 2.0 is a web-based PV and energy storage system tool that promises to solve all of those issues, and much more. This webinar will provide a live demonstration of the SmartDeisgn 2.0 tool, showing how installers can quickly complete Huawei PV & ESS system designs and assemble a professional report with 3D site view for potential customers, streamlining the design and sales service.
23 August 2022
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil, on August 23–25, 2022, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry. In 2021 – despite the Covid-19 pandemic – Intersolar South America welcomed more than 28,000 visitors and over 1,000 conference attendees over 3 days. 200+ providers showcased their products. Combining local and international expertise, Intersolar South America brings together the PV and solar thermal sector to discuss the current status and strategic trends for Latin American PV markets, as well as technology innovations and new business opportunities. Overall, distributed generation is still driving momentum in the Brazilian market.
6 September 2022
Intersolar Mexico sits at the cross-section of photovoltaics, solar heating & cooling technologies, and energy storage. The event serves as the industry’s go-to source for invaluable technology trends and premier B2B contacts in the promising Mexican solar market. From September 6–8, 2022 Intersolar Mexico together with the co-located The GREEN Expo® and Aquatech Mexico will take place in Centro Citibanamex, Mexico City.
19 September 2022
RE+ 2022 is the umbrella event that includes SPI, ESI, RE+ Power, and RE+ Infrastructure. As North America's largest renewable energy event, it's a catalyst for industry innovation that's supercharging business growth in the clean energy economy.
20 September 2022
From source to generation, from grid to consumer, the boundaries of the sector are blurring and this evolution is being shaped by established players, external disruptors, innovative start-ups and the increasingly engaged end-user. Enlit Asia is the unifying brand for POWERGEN Asia and Asian Utility Week, showcases expert knowledge, innovative solutions and foresight from industry leaders, coherent with Asian strategy to achieve a smooth transition towards a low carbon energy supply. This year, Enlit Asia will be co-located with Sustainable Energy Technology Asia (SETA) & Solar & Storage Asia (SSA).

Read Next

July 1, 2022
Hanwha Qcells’ power plant division Q ENERGY Europe has teamed up with newly rebranded Q ENERGY France to establish umbrella company Q ENERGY Solutions SE as it seeks to deepen its ties to the European market where it has a 12GW development portfolio.
July 1, 2022
The US Supreme Court has restricted the federal government’s authority to regulate greenhouse gas emissions from power plants in a ruling that critics have warned will hit renewables deployment and hobble the Biden administration’s climate agenda.
July 1, 2022
Off-grid pay-as-you-go solar provider Bboxx has partnered with telecommunications company Orange to launch a new solar mini-grid project to help accelerate clean energy access for households across the Democratic Republic of Congo (DRC).
PV Tech Premium
July 1, 2022
PV Tech Premium spoke with Cypress Creek Renewable Energy and AES Clean Energy to discuss the newly formed US Solar Buyer Consortium, its objectives, market challenges and the potential advantages it holds for US manufacturing and project development.
July 1, 2022
Energy management software company Cleartrace has secured US$20 million in a financing round to accelerate the growth of its platform.
June 30, 2022
Investor CleanCapital has acquired renewable energy developer BQ Energy, adding 300MW of late-stage solar development to its pipeline.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event