Preliminary sales at Sunways were half those reported in last year's corresponding quarter as weak market demand hit the PV manufacturer hard. Sales were €22.2 million in the first quarter of 2011, compared to €44.3 million in the first quarter of 2010. However, the company expects sales to bounce back in the second quarter reaching approximately €34 million.
“In the context of our planning for 2011 we had – against the background of the strong prior year and the further reduction of feed-in tariffs in Germany as of 1 January 2011 – already expected a weak start to the year and a negative operating result for the first three months,” commented Michael Wilhelm, Chairman of the Management Board of Sunways AG. “However, as a result of the unexpectedly high inventory levels of dealers and hesitant demand, the operating result generated in the first quarter was below our expectations.”
Sunways echoed a familiar theme to business operations, citing weaker demand, inventory build and falling prices that would negatively impact previously expected growth in 2011.
The company noted that it did not expect sales growth in the double-digit percentage range it had previously guided for 2011.