3W Power Holdings, the holding company of AEG Power Solutions (AEG PS), has reported its financial results for the third quarter ended September 30, 2010. While Q3'10 is typically a weak quarter cyclically for AEG PS, due to traditionally slower trading in Europe in August, the solar segment still came out on top.
Total company orders for the quarter were €89.7 million, 93% higher than the third quarter of 2009 and 5.9% higher than the second quarter of 2010. Sales in the quarter were €70.1 million, down 11% over the same period in 2009 and down 8.3% on the second quarter of 2010. Q3 is typically a weak quarter cyclically for AEG PS, a reflection of traditionally slower trading in Europe in August.
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Solar orders amounted to €25.3 million in comparison to €19.2 million in the second quarter of 2010. Three consecutive quarters of increased orders for the group alongside a strong demand for solar indicate a sustained turnaround moving forward. The book to bill ratio improved from 59% in the third quarter of 2009 to 128%.
Third quarter EBITDA improved and was a positive €0.75 million (2009 pro-forma €12.82 million) compared to negative EBITDA of -€4.31 million in the second quarter 2010. For the nine months to September 2010, EBITDA was €0.49 million, (2009 nine month pro-forma €73.3 million) against -€0.26 million for the half year. Operating cash flow in the quarter was positive €5.0 million. Order backlog at the end of September 2010 stood at €140.6 million (2009 €147.4 million).
AEG reiterates its forecast of posting revenues of above €300 million and a positive operational EBITDA for fiscal 2010. In Q4'10 new one-time restructuring provisions are to be expected.
