On February 21st, 2012 Sunways AG (Konstanz, Germany) released preliminary financial information for the fourth quarter and fiscal year 2011, estimating fourth quarter revenues of EUR 31.2 million (USD 41.3 million) and an EBIT roughly at third quarter 2011 levels, which stood at EUR -11.8 million (USD -15.6 million).

Despite these losses, Sunways increased its module sales during the fourth quarter to a new record of 22.1 MW, as well as reaching an annual PV module sales record of 66.8 MW in 2011. The company estimates sales of EUR 115 million (USD 152 million) over the full year 2011, roughly half its 2010 sales of EUR 223 million.

"2011 was an extremely difficult year for the photovoltaics industry worldwide," notes Sunways CEO and Management Board Chair Michael Wilhelm. "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."

"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 reports high on-time expenses

Sunways' 4Q sales were a 34% increase over the previous quarter, but a 44% decline from the fourth quarter of 2010.

Sunways notes that its operating results were impacted non-recurring effects related to provisions for anticipated losses from wafer supply contracts and various agreements for the manufacture of inverters, provisions for warranties and fixed asset impairments.

The company also reports EUR 22 million (USD 29 million) in fourth quarter expenses resulting from LDK Solar Company Ltd.'s (Xinyu, China) takeover of the Sunways, which was approved by Germany regulatory authorities on February 13th, 2012.

Sunways will release full FY 2011 figures in its 2011 annual report on March 30th, 2012.

2012-02-22| Courtesy: Sunways | solarserver.com © Heindl Server GmbH

Our editorial selection of breaking solar news is published at:
www.solarserver.com/solar-magazine/solar-news/top-solar-news.html