German-based PV module manufacturer and project developer, aleo solar is withdrawing from the US market due to its operations continuing to be unprofitable, according to a short company statement.
aleo solar said that it would dissolve its subsidiary aleo solar North America Inc., based in Denver, Colorado despite improving sales year-on-year.
The company has also been impacted by shrinking sales in Europe and in particular, Germany. The company recently reported first half-year sales down 58.9% compared to the equivalent period of 2012. Revenue for the first half of this year was €68.3 million (US$90.8 million), compared with €166.4 million (US$221.2 million) for 2012.
However, in releasing financial figures in August, the company noted that it had taken steps to boost its position in the growing US market.
Majority-owned by Bosch, aleo solar is only being financially supported by the company until next year. Bosch itself is winding down its loss-making solar arm.
The move to exit the US market could be part of a strategy to reduce costs and losses and improve its balance sheet before looking for a capital injection to support ongoing operations.