PV manufacturer and project developer Centrosolar is to dispose of its solar glass operations due to falling market prices and sales volumes.

The company last month indicated its glass business would be targeted in a restructuring plan aimed at halting declining revenues.

The main determining factor for Centrosolar's final decision to dispose of its glass operation was its deterioration from €2.2 million in the previous year to negative €12.6 million (US$16 million) in 2012.

The company said in a press statement: “These impairments have been necessitated by the downward revision of the group companies’ targets as a result of the difficult situation in the industry, and also because the cost of capital underlying the valuations have been raised.”

Centrosolar continues to delay the publication of its annual results “due to the exceptionally high compilation and auditing requirements”, said the company. The company is continuing with its other restructuring measures announced in February.

The revenue of Centrosolar reached €227 million (US$290 million), down approximately 22% on the previous year’s total of €293 million, though it noted sales of its modules were up slightly on last year.

The mainly price-driven fall in revenue was behind the reduced gross profit, which is by and large responsible for the downturn in the operating result at EBITDA level from negative €10.4 million (US$13.3 million) in the previous year to negative €16.4 million (US$21 million) in 2012.

The net result was significantly down on the previous year’s negative €16.8 million at negative €73.6 million (US$94 million).

The company also said it had cash and cash equivalents of €18.3 million (US$23.4 million) from €25.9 million in the previous year. Group equity fell from €79.2 million to €6.1 million (US$7.8 million) as a result of the high goodwill impairment, the negative contribution from the discontinued glass operations and the negative operating result for the continuing operations.

“The company cannot be satisfied with the earnings and financial situation,” said Centrosolar.

“Centrosolar will pull through this industry crisis and that there will once again be very good business opportunities in the future market of photovoltaics.”