Phoenix Solar AG (Sulzemoos, Germany) has announced that it will disassociate itself from its subsidiaries in Spain, Italy and Oman, as well as divesting itself from its solar photovoltaic (PV) components & systems business. This will include an unspecified number of employee layoffs.

The company emphasizes that other regional subsidiaries including North America and Singapore are doing well. Additionally, Phoenix Solar announced a number of board and executive changes, including the appointment of Chief Financial Officer (CFO) Dr. Bernd Köhler as CEO effective March 1st, 2013.

"The discontinued operations made significant operating losses in 2012," states Dr. Köhler. "This did not come unexpectedly."

"But the ongoing adverse market effects and the regulatory changes in disfavour of photovoltaics made it increasingly unlikely that the expected increase in shipments which was needed for a return to profitability would actually come to occur in spite of numerous efforts by staff and management."

"Therefore, we had to react with the severe cuts we are now executing although this means to dismiss many qualified employees."

Dr. Hänel resigns from management board

Additionally, Founding Director Dr. Andreas Hänel has announced his resignation from the management board effective February 28th, 2013. Phoenix Solar recognized Dr. Hänel for his service in navigating the company through its recent restructuring.

Phoenix Solar states that the components & systems and power plant activities of the international subsidiaries, its operations and maintenance unit and the development of new business models for the project and distribution business will remain important focuses of the company going forward.

Increased loss in 2012

The company notes that it has consulted with its lending banks about the change in strategy, and as a result has adjusted its total financing volume down to roughly EUR 126 million (USD 169 million). Its credit lifetime has also been extended another year to March 31st, 2015.

Phoenix Solar now expects to record an operating loss of EUR 32 million (USD 43 million) in 2012, worse than its earlier estimate of a EUR 19 to 25 million (USD 25 to 34 million) loss.

The company also notes that this will reduce its revenue guidance for 2013 to between EUR 160 and 190 million (USD 210 to 250 million), almost half its earlier estimate. Phoenix Solar still expects to nearly break even with its operating results in 2013.

2013-02-12 | Courtesy: Phoenix Solar AG | solarserver.com © Heindl Server GmbH

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