Weak demand that continued until the fourth quarter of 2011 led to Sunways' annual sales decline by almost 50%, compared to 2010. Record module shipments in the fourth quarter did little to dent the revenue declines as ASPs declined significantly compared to the previous year. Preliminary full-year 2011 results show sales of €115.4 million, compared to €222.7 million in 2010.
“2011 was an extremely difficult year for the photovoltaics industry worldwide. The very hesitant demand over a long period of time and unexpectedly strong price declines also had a negative impact on the development of sales and earnings of Sunways,” commented Michael Wilhelm, the chairman of the management board and CEO of Sunways. “Since the prospects of German providers in the global competition among PV manufacturers will be more strongly affected in the short term, we reviewed the carrying amounts of our production-related and other reported assets and accounted for potential risks.”
Sunways reported sales in the fourth quarter €31.2 million, compared to €55.5 million in the prior year period, despite achieving a new quarterly record of module shipments of 22.1MW, compared to 16.6MW in the previous period.
Inverter sales also recovered near the end of the year. The company noted that buying reluctance led to a marked decline in sales volumes in the third quarter; the segment reported sales volumes of 49.6MW, up slightly on the prior year level of 46.1MW.
Although preliminary results excluded profit and loss figures, Sunways noted that it expected to incur one-off items such as the Deutsche Solar wafer contract cancellation as well as approximately €22 million related to the LDK Solar acquisition.
Sunways AG will publish full-year results on March 30, 2012.