Sunways sales still shrinking: 2H 2011 losses expected

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Continuous pressure on pricing as demand remains weak has further impacted PV product sales and profits at Sunways. Consolidated sales declined by €35.0 million to €23.3 million, compared to the same quarter a year ago when sales reached €58.3 million. Lower cell manufacturing utilization, inventory write-downs on falling ASPs meant Sunways reported losses € 6.3 million an a negative operating result (EBIT) of €11.8 million in the third quarter.

Although using module assembly capacity at LDK Solar in China, the lead-times between shipping cells for module assembly and receiving modules back to Europe meant Sunways could not cover cost prices. An inventory write-down of €3.8 million was required in the quarter as a result.

Sales outside Germany increased but failed to fully compensate for weak demand in Germany. In the third quarter 2011, Sunways generated sales in Europe (not Germany) of €9.9 million, down from €16.8 million in the prior year period, equating to 42.5% of 3Q sales, up from 28.8% in Q3, 2010.

Sales in France more than tripled from the prior year quarter to €2.0 million due to the distribution cooperation with Wattsol S.A.R.L, according to the company. International sales in the first 9-months of 2011 increased to €42.3 million, up from €36.9 million in the prior year period.

Sunways recorded a module sales volume of 11.4MWp in the solar module segment and generated corresponding sales of €14.0 million. In the solar inverter segment, the sales volume of 38.9MWp fell significantly behind the relevant figure for prior year quarter of 68.0MWp. Solar cell segment sales dropped to €12.1 million in Q311, compared to €27.9 million in Q310.

The company noted it had introduced short-time work at its cell plant in Arnstadt, in early September, to adjust production capacities to the current demand.

Sunways expects to generate sales revenue of €100-€120 million for the fiscal year 2011 and a negative operating result (EBIT) in the lower double-digit million range. Losses have been reported for three consecutive quarters.

“Sunways strongly focuses on restoring and securing the Company’s profitability on a sustainable basis,” commented Michael Wilhelm, Chairman of the Management Board of Sunways. “The objective is to minimize any further negative effects on our earnings and liquidity position. All measures already initiated to reduce costs and ensure liquidity will be further intensified. Additional projects relating to a review and potential adjustment of the business model have already been started.”

19 July 2022
Free webinar - Hear an updated and live talk that was first delivered by PV Tech's Head of Research, Dr Finlay Colville at the PV ModuleTech conference in Napa on 15 June 2022: - The PV industry has moved beyond its legacy supply/demand dynamics: why has this happened? - ASPs can’t go down globally in the near to mid-term: why is this the case? - Is there new capacity coming to the rescue? - Has China’s polysilicon industry become a new PV pricing cartel? - Making products & deploying domestically in a TW annual landscape: how can the U.S. really do this in practice? - The real PV technology roadmap: why do only 2% of producers matter today?
19 July 2022
As New South Wales is gearing up to become a renewable energy superpower, an exciting clean energy event is coming to Sydney. Energy Next is a free-to-attend industry event focusing on the latest renewable energy and energy management technologies, which will be held from 19-20 July 2022 at the ICC Sydney in Darling Harbour. Organised by the same people behind the country’s largest clean energy event, All-Energy Australia, Energy Next will bring a quality exhibition and technical session series to NSW. Energy Next will also host the Clean Energy Council’s Solar Masterclass with a program developed for solar designers and installers. Across two days, Energy Next will provide an extensive exhibition, workshops and networking opportunities for those working in the renewable energy industry to meet with leading suppliers, discover the latest technologies and gain an understanding of how to successfully launch new clean energy projects.
20 July 2022
Join us for this free webinar on 20th July as Finlay Colville, Head of Research at Solar Media, provides a detailed update on the UK's solar industry today: Where is growth coming from, how much deployment is likely over the next 12-18 months? The large-scale solar farm pipeline at 40 GW and still going up – how much is getting built today? Commercial rooftops - the big story of UK solar in 2022; but is this just the tip of the iceberg? Why are PV module prices going up? What will happen in the next couple of years? The era of PV modules at 500 Watts and above: what is driving this?
21 July 2022
The rooftop solar PV market is set for significant growth, but installers are being held back by complicated design software that is slow, cumbersome and fails to take into account rooftop shading, module compatibility and energy storage. Huawei’s SmartDesign 2.0 is a web-based PV and energy storage system tool that promises to solve all of those issues, and much more. This webinar will provide a live demonstration of the SmartDeisgn 2.0 tool, showing how installers can quickly complete Huawei PV & ESS system designs and assemble a professional report with 3D site view for potential customers, streamlining the design and sales service.
27 July 2022
The corporate renewable market is growing rapidly driven by increasing focus on decarbonisation and sustainability. There are several procurement options already popular today – open access, rooftop solar, RECs and green tariffs. Some new procurement routes as well as technologies are emerging – VPPA, storage, round-the-clock PPAs etc. Each procurement option comes with unique benefits and challenges related to policy and regulatory framework, commercial feasibility, contractual terms, execution and operational aspects. This programme is designed to empower business managers with adequate knowledge and skills to analyse different procurement options and develop an optimal roadmap based on their individual needs. The programme will be conducted by BRIDGE TO INDIA team supported by leading experts from the renewable energy industry.
27 July 2022
As solar PV projects embrace large-format and bifacial PV modules, inverters are evolving to deliver benefits across all three main LCOE variables, namely Capex, Opex and yield. However, asset operators are also demanding more oversight of the health of their projects, in turn demanding even more from modern inverter technology. This webinar will discuss how modern solar inverters have evolved to keep pace with PV module technology, providing real-life examples of how GoodWe has solved challenges for solar project developers and asset managers.

Read Next

PV Tech Premium
July 6, 2022
The company behind a renewables project that will feature 7GW of solar PV and 5GW / 20GWh of battery storage in Morocco is progressing with offshore surveying for four high-voltage direct current (HVDC) cables that will eventually connect the installation exclusively to the UK.
July 6, 2022
Energy major Shell will start constructing a renewable hydrogen plant in the Netherlands that it said will be the largest project of its kind in Europe when operational in 2025.
July 6, 2022
US power distribution company Entergy Arkansas has issued a request for proposals (RfP) for 1GW of solar and wind resources.
PV Tech Premium
July 6, 2022
Mark Osborne assesses solar research and development spends of the last decade, contextualising the industry’s current transition to TOPCon and how it has been driven.
July 6, 2022
Polish developer R.Power is seeking a primary equity capital raise to fund its future growth plans in several European countries.
July 6, 2022
US PV developer Birch Creek Development has increased its existing credit facility with debt financing provider Fundamental Renewables to US$250 million to pursue its 5GW solar pipeline in the US and support its module procurement strategy.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
July 19, 2022
Free Webinar - 10am and 6pm BST
Upcoming Webinars
July 27, 2022
9am (UTC +2) / 3pm (UTC +8)
Solar Media Events
October 4, 2022
New York, USA