On September 24th, 2012 Conergy AG (Hamburg, Germany) released selected preliminary financial estimates for the fourth quarter and full year 2011, stating that it expects sales of roughly EUR 185 million (USD 242 million) during the fourth quarter and EUR 755 million (USD 989 million) during the full year.

The company notes that this is in line with its previously released guidance, however it also expects a EBITDA of EUR -80 to -85 million (USD -105 to -111 million) in 2011, well below its guidance of EUR -50 to -55 million. Conergy states that both falling module prices and restructuring costs negatively impacted its earnings.

"Throughout the year we have seen module prices drop by over 40% in the entire sector," says Conergy CEO Dr. Philip Comberg. "In this difficult market environment our sales have slightly gone down compared to 2010. However, and thanks to our strong international sales presence we have been able to increase our sales volumes."

"In 2011, we experienced substantial negative one-off effects due to the strategic reorientation at our plant in Frankfurt (Oder) – and also final special expenditures in the fourth quarter. But we are confident that we have established a good foundation for the 2012 fiscal year through our actions, a year in which we will see a continuing difficult market environment."

Selling of stock from supply contracts impacts 2011 profits

Conergy states that its EBIDTA was negatively impacted by delays in project financing due to the European financial crisis, write-downs on receivables and a decision to reduce inventory by selling stock from long-term supply contracts at the end of 2011.

The company states that while these decisions will affect 2011 profits, that they will also allow the company to enter 2012 with fewer liabilities, and enabled a positive cash flow in the fourth quarter of 2012.

In 2012, Conergy's Management Board expects a "modest" decline in sales, along with an improved EBITDA.

2012-01-26| Courtesy: Conergy AG | solarserver.com © Heindl Server GmbH

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