S.A.G. Solarstrom AG continues on a growth curve in Q1 2010
- Group sales increased more than threefold to €31.3 million
- EBIT improved to €1.6 million, EBIT margin at 5.2%
- Total group result reaches €1 million
- Well-stocked project pipeline corroborates forecast for 2010
Freiburg, May 17, 2010. S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008), Freiburg, got off to a very promising start in the first quarter of 2010. Pull-forward effects in the German photovoltaic market boosted business in plant construction. Sales increased from €9.7 million to €31.3 million. EBIT, which was -€0.3 million in the first quarter of 2009, rose to €1.6 million in the reporting quarter. As a result, the total group result rose significantly from -€0.2 million to €1 million. The business segments Project Planning and Plant Construction, as well as Partner Sales, were the dominating growth drivers of the S.A.G. Group in the first quarter, with regard to both sales and results.
Plant Construction and Partner Sales highly dynamic
The German government is planning to reduce the rates for the feed-in tariff according to the Renewable Energy Act (EEG) on July 1, 2010, which caused a perceptible boom in the demand for photovoltaic systems in the first quarter of 2010. The business areas Project Planning and Plant Construction, and in particular Partner Sales and Distribution were both able to profit from this increase in demand. While sales rose from €4.4 million in the previous year to €10.9 million in the reporting period, and EBIT from -€0.5 million in the previous year to around €0.3 million during the reporting period in Project Planning and Plant Construction, Partner Sales increased from €3.2 million to €16.5 million in sales and from -€0.1 million to €0.9 million in EBIT. The decisive factor for these positive results was the above average number of contracts concluded with exclusive and high-performance sales partners of S.A.G. Solarstrom AG in Germany. The increase in the number of new photovoltaic system constructions also fuelled the demand for services in the business area of Plant Operations and Services. Sales increased in the first three months of 2010 by €1.8 million to €3.4 million (Q1 2009: €1.6 million), while EBIT increased from €203,000 to €445,000. Although sales increased in the business area of Power Production by 12.6%, EBIT dropped from €0.05 million in the first quarter of 2009 to €0.01 million in the reporting quarter. The reason for this was the delay in optimization and adjustment work in the startup phase of the rooftop system project of Solarpark Rain GmbH & Co. KG at the Dehner Garden Center, which could only be performed from mid-March 2010 due to ice and snow. The full amount of depreciation and fixed costs therefore offset the revenue, which remained below average until full operation.
S.A.G. Solarstrom Group well prepared for high demand
The S.A.G. Solarstrom Group is well equipped for the high level of business activity. Under the current assets, inventories were increased considerably to €7.9 million. The stock levels, which have been very low since the end of 2009, were thus adjusted optimally to the new increase in demand for modules and photovoltaic components. In addition, financing of current and planned projects is more planable than in the past. The liquidity of the S.A.G. Group also rose from €1.5 million in Q1 2009 to €2.6 million in the reporting quarter.
“The S.A.G. Solarstrom Group has achieved this very positive result in the first quarter despite a highly challenging market environment. The long and hard winter delayed implementation of projects up to March 2010. Our project pipeline is well stocked, and we are thus well on schedule with our forecast for 2010, with sales of between €190 and €210 million and an EBIT of between €8 and €11 million”, says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG.
About S.A.G. Solarstrom AG
S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) of Freiburg i.Br., Germany, are a manufacturer-independent provider of high-quality photovoltaic plants configured to customers’ individual needs. The group constructs efficient plants of all sizes both in Germany and abroad. S.A.G. Solarstrom AG also produce solar energy at their own plants.
S.A.G. Solarstrom AG’s service portfolio covers the entire life cycle of photovoltaic plants, including forecast and energy services, yield reports, and remote maintenance, as well as insurance and financing. The group thus offers a comprehensive value chain in photovoltaics, from yield reports, planning, construction, operations, and monitoring to optimization, repowering, and deconstruction.
Founded in 1998, S.A.G. Solarstrom AG are considered pioneers in the solar industry. Around 160 specialists work at the four locations in Germany and subsidiaries in Italy, Spain, Austria, and Switzerland.
S.A.G. Solarstrom AG are listed on the open market, Entry Standard of the Frankfurt Stock Exchange as well as according to the rules and standards M:access of the Munich Stock Exchange.
Further information: www.solarstromag.com
S.A.G. Solarstrom AG
Sasbacher Straße 5
79111 Freiburg
Germany
Public Relations / Investor Relations
Jutta Lorberg
Tel.: +49-(0)761-4770-311
E-Mail: pr@solarstromag.com / ir@solarstromag.com