Despite record PV installations globally and in Germany in particular, German-based PV systems supplier, Sunways saw its sales decline by 50% in 2011, according to financial statements. The company has sales of €116.2 million in fiscal year 2011, compared to €222.7 million in 2010. Sunways reported a consolidated net loss of €62.1 million, compared to a profit of €9.3 million in the prior year period. Management cited shifts in demand in target markets as well as dramatic price declines for slump in sales. The company is now majority owned by LDK Solar.
“2011 was an extremely difficult year for the entire German solar industry, a fact which is also clearly reflected in our financial statements,” noted Michael Wilhelm, Chairman of the Management Board of Sunways. “Non-recurrent expenses in the context of the transaction with the LDK Solar Group also had a negative impact on the operating result of Sunways. However, we have won a strategic investor for the future who will open up new growth prospects for our company,” added Wilhelm.
The company was impacted by impairments due to wafer purchase contracts with Deutsche Solar as well as provisions for warranties and impairments of fixed assets.
The company said that 45.4% of sales were generated abroad, compared to 29.2% in 2010 but corresponded to sales revenues of €52.7 million in 2011, compared to €65.2 million in the previous year.
PV modules sales in 2011 reached 66.8MW, up 23.7% when compared to 2010. However, due to price declines module sales revenues declined to €81.3 million compared to €96million in the prior year period.
PV inverter sales were down significantly at €27.5 million, compared to €46.6 million in 2010, a 41% decline. The company said that inverter sales were at their weakest in the first quarter of 2011 yet improved during the rest of the year.
Sunways reported expenses of €44 million in the fourth quarter of which €34 million was related to transactions and other non-recurrent effects.