Phoenix Solar posted revenue details for the third quarter of 2011, of €113.1m, up 18.7 % on last year’s figure of €95.3. This increase helped to temper the overall decrease in consolidated revenue for the first nine months of 2011 to €253.9m down 44.7% on last year’s equivalent period figure of €459.3m.
This decline had already been predicted by Phoenix Solar at the beginning of the year, due to weak demand and continual decrease in the price of solar modules.
Phoenix Solar explained that the acceleration in the decline of prices over the course of the third quarter incurred substantial inventory impairment which burdened the result.
Below is a breakdown of each segment:
Phoenix Solar has attributed a significant portion of the third quarter 2011 increase of 18.7% in revenue to international business which grew by 53.4% to €81.0 million up from €52.8 million last year.
Components and Systems
This segment of the business had generated revenue of €65.8 million in the third quarter but losses of €15.4 million. Phoenix Solar reported inventory write downs of €20.5 million in respect to modules in the first 9-months of the year. PV inverter write downs have cost the company €6.9 million and BOS write downs of €1.6 million by the end of the third quarter. This segment delivered revenues of €155 million for the first nine months of 2011 compared to €268 million in 2010 showing a significant decrease of 42.2%.
Between 2010 and 2011 there was a 14% increase in revenue with 2011 figures at €47.3 million and 2010 at €41.5 million.
Earnings before interest and taxes (EBIT)
EBIT for the third quarter of 2011 was €13.2m compared to the loss of €16.9m incurred in the first quarter of 2011.
The third quarter of 2011 saw orders down 12.5% to €237 million on last year’s amount of €271 million for the equivalent period.
“Despite an increase in revenues and sales volumes, the steep decline in solar module prices caused a considerable downturn in the result in the third quarter. To return to profitability in this difficult market environment, we intend to position ourselves in future as a leaner company and to concentrate on the high-margin areas of value added”, stated Dr Andreas Hänel, CEO of Phoenix Solar.
Phoenix Solar has revised its guidance for revenues and results downwards for the financial year 2011, whilst coming up with measures to cut costs and optimize its business model in order to be able to return to the profit zone next year.