SolarWorld AG announces agreement with another important silicon supplier

The agreement will strengthen the group's silicon supply security under competitive conditions, says SolarWorld
The agreement will strengthen the group's silicon supply security under competitive conditions, says SolarWorld

After negotiations with another unnamed supplier of raw materials, SolarWorld AG (Bonn) has been able to place its long-term business relationship with this partner on a new contractual basis, strengthening the Group's silicon supply security under competitive conditions, the company reports.

The agreement reached on July 11th, 2014 will result in a revaluation of prepayments and/or repayment claims against the raw material supplier in the balance sheet of SolarWorld AG. Consequently, this will burden the consolidated result of SolarWorld AG in fiscal year 2014 by presumably a non-cash, one-off effect in a low double-digit million Euro amount, the company notes.

This will be reflected in the earnings before interest, taxes, depreciation and amortization (EBITDA). For the future liquidity of the SolarWorld Group, the agreement has positive effects, Solar World emphasizes.

A corresponding adjustment of the EBITDA forecasted for 2014 not taking into account the positive one-off effects from the financial restructuring and from the initial consolidation of assets from Bosch Solar Energy AG will be conducted in the interim report on the first half of 2014.

 

2014-07-14 | Courtesy: SolarWorld AG | solarserver.com © Heindl Server GmbH

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