Market conditions worse than expected says aleo solar

Weaker than expected demand in key markets of Germany, Italy and UK in the third quarter have led to aleo solar further lowering its revenue expectations for 2012. The module manufacturer had said at the beginning of August that it expected a "surge in sales" especially from the German market in the second-half of the year with stability restored after the feed-in tariff changes.

The company said that it expected full-year sales to be approximately €280 million, down from previously lowered guidance of €370 million. Aleo solar had said at the beginning of the year that it expected revenue to be in the range of €410 million. The company expects turnover to be approximately 50% lower in the third quarter of 2012 than it was in the third quarter of 2011.

The company said that it would make further write-downs in the quarter of approximately €13 million as of 30 September 2012.

Having previously announced it would be dissolving the joint venture module production operations of avim solar in China, to boost factory utilization rates at its major plant in Germany, aleo solar said that the closure would result in a write-down of approximately €11 million.