DGAP-News: Q-Cells announces results for second quarter 2011
(businesspress24) - DGAP-News: Q-Cells SE / Key word(s): Quarter Results
Q-Cells announces results for second quarter 2011
10.08.2011 / 17:46
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PRESS RELEASE
Q-Cells announces results for second quarter 2011
- Sales revenues in the second quarter increase steeply compared to the
previous quarter
- Operating loss due to significant one-off effects
- Negative EBIT expected for full year despite market recovery in the
second half of the year - positive EBIT target for 2012
- Package of measures for lowering production and administration costs
- Andreas von Zitzewitz - new Executive Board member responsible for
Production and Technology
Bitterfeld-Wolfen, Germany, 10 August 2011 - Q-Cells SE was able to
increase sales revenues significantly compared to the extremely weak first
quarter, but recorded another operating loss in the second quarter due to
the continuing price drop and considerable one-off effects. The Company
expects a negative EBIT for the full year 2011 despite signs of a recovery
in the markets. A package of measures, which includes streamlining the
organisational structure and optimising costs, should help the Company
return to operating profit in 2012, which is still expected to be a
difficult financial year.
Q-Cells SE was able to significantly increase sales revenues in the past
quarter compared to the first quarter of 2011. The Company generated sales
revenues of EUR316.0 million in the second quarter (Q1 2011: EUR125.1
million), mainly on account of strong systems business. Due to the
difficult market situation and further price drops in the second quarter
however, Q-Cells recorded a negative EBIT. In addition, significant one-off
effects had a negative impact on operating income in the second quarter of
2011. Considerable impairment charges were carried out on property, plant
and equipment as well as write-downs on inventories to account for changed
market conditions. In the second quarter, impairment charges on property,
plant and equipment of the German production sites amounted to EUR139.7
million, and EUR73.2 million for Group inventories. One-off effects,
including expenses in connection with onerous contracts of EUR43.6 million,
came to EUR256.5 million in the second quarter. The Company recorded a
total operating loss of EUR307.7 million in the second quarter (H1 2011:
EUR-318.3 million), as a result of idle costs due to low capacity
utilisation and the price drop for cells as well as modules. Adjusted by
one-off effects and idle time costs the operating profit (EBIT) in the
second quarter amounted to EUR-24,4 million. After interest and taxes, the
loss for the second quarter of 2011 amounted to EUR354.8 million (H1 2011:
EUR-395.8 million).
'In the first half of the year, the difficult situation in the European
market hit us particularly hard. I expect competition to remain tough in
the coming year with no significant changes to demand, but we will be in a
much better position to deal with it,' said Nedim Cen, CEO of Q-Cells SE.
'I am convinced that the strategy of further developing Q-cells into a
photovoltaic solutions provider is the right way to go.'
Package of measures to be implemented
In response to the difficult market situation and negative results in the
first half of the year, the board of directors today decided on a package
of measures for the further strengthening of the Company's competitiveness.
This program is subject to approval by the supervisory board. At the end of
last year, Q-Cells completed a comprehensive restructuring programme,
during which the Company focused on its core business, generated
significant savings and expanded its module portfolio. After production was
cut back in the second quarter of 2011, the now planned package of measures
resharpens.
The planned measures aim to significantly reduce the production costs of
solar cells and modules. To achieve this, Q-Cells is focusing production on
high-performance systems, particularly at the Company's Malaysian site,
which will run at full capacity in the second half of the year. Production
capacities for solar cells at the Company headquarters in Bitterfeld-Wolfen
will be permanently reduced to 50 %. The module production line for
crystalline Q.PEAK high-performance modules is currently being ramped up in
Bitterfeld-Wolfen. With immediate effect, Q.SMART thin-film modules with
CIGS technology are being produced at full capacity again on the blueprint
production line at the subsidiary Solibro. The Company is aiming for total
production capacities between 1.0 to 1.2 gigawatt in 2012.
Research and development is being expanded to include the full spectrum
from solar cells to solar systems and applications to become even quicker
at developing marketable products with competitive system costs. System
solutions such as flat roofs, car ports and system kits are to be used in
particular in the business segments Residential and Commercial&Industrial, which Q-Cells aims to expand significantly. Sales activities
will also focus even more strongly on customer groups and international
target markets and sales structures will be simplified.
The overall objective of the package of measures is to reduce complexity.
In addition, Q-Cells is constantly working on reducing costs for production
as well as for the procurement of raw materials and solar wafers. In
Administration, 25 % to 30 % of costs are to be saved by pooling tasks and
streamlining the organisational structure and processes. The Company aims
to avoid enforced redundancies when streamlining the organisational
structure and adjusting production. Temporary workers are no longer being
employed since adjusting production in April. Around 90 employees are
currently changing over to the new solar module production that was started
up in July.
Changes to the Executive Board
In its meeting on 11 August 2011, the supervisory board is to decide over
changes in the board of directors. Andreas von Zitzewitz is to assume the
position of COO with immediate effect . In that function he will be
responsible for Production, Research&Development, Purchasing, Logistics
and Quality. CEO Nedim Cen had temporarily assumed these tasks since
Gerhard Rauter left the Company in May 2011. Andreas von Zitzewitz has
extensive management experience in the fields assigned to him, which he had
gathered in his last position as an Executive Board member of the solar
company Conergy and prior to that at the semiconductor producer Infineon
Technologies and at Siemens. The 51-year old electrical engineer, who
graduated with a doctorate, will focus on strengthening Q-Cells'
competitive position with regard to crystalline solar cells, solar modules
and solar systems as well as CIGS thin-film modules of the subsidiary
Solibro.
'I am pleased that Andreas von Zitzewitz provides himself to Q-Cells as an
experienced executive manager. He shall focus on strengthening our
innovative power and productivity as well as professionalising our business
processes. He and the Company will be able to fall back on his knowledge of
the photovoltaic and semiconductor industries,' said CEO Nedim Cen.
Market recovers - and inventories are full
The success in recent weeks confirms that Q-Cells is on the right way with
its strategic focus - and that the solar market will recover again.
However, product prices are still under a lot of pressure as inventories
are still full. While the market almost came to a complete standstill in
the first quarter, demand started increasing again at the end of the second
quarter. This is reflected in the steep sales revenues growth in the second
quarter compared to the previous quarter. In the systems business, the sale
of the German solar park Finsterwalde II&III was successfully concluded,
and the first two sections of solar park Zerbst were also completed. In the
third quarter, Q-Cells received an order for the construction of the
following three sections of this project with a volume totalling 26 MWp.
In Ontario, Canada, Q-Cells received another order for a 10 MWp solar
project by Starwood Energy Group Global and will therefore realise a total
volume of 60 MWp in this region. Q-Cells is presently expanding its
Malaysian production site into a new regional sales hub so as to position
itself in the future markets of Asia/Pacific. In addition, Q-Cells received
its first large order for 20 MWp of Q.SMART thin-film solar modules in the
third quarter. Q-Cells currently has order backlog in excess of EUR200
million.
The company has also entered into a sponsoring partnership with BVB
Dortmund to strengthen the Q-Cells brand as well as sales. According to the
motto 'SolarChampions', the German soccer champion and participant in the
Champions League chose Q-Cells from 20 companies to advertise for
sustainable solar power. A solar system of the roof and facade of the
stadium forms an integral part of this agreement, giving Q-Cells the
opportunity to prove its competence in the field of commercial rooftop
systems - to a selected audience of experts. Together with the partnership
programme PRO.MAP, this measure is aimed at enhancing sales.
'We offer our customers an attractive portfolio of reliable high-quality
and high-performance products. Our new solar application for flat roofs
shows that we can save significant system costs with our clever solutions,'
commented Nedim Cen. 'We will continue to pursue this path with our
customers and partners, which trust in our technological competence and our
know how when it comes to finding solutions.'
Outlook
According to medium-term market forecasts, competition in the global
photovoltaic industry will be intense in 2011 and 2012 due to high surplus
production capacities. Solar power will only become increasingly
competitive - even without government subsidies - and tap new markets at a
later date. Q-Cells is using the current measures to prepare itself in
terms of strategy for this scenario.
Q-Cells SE expects sales revenues of around EUR1 billion and an operating
loss in the three-digit million euro range for the full year 2011, as it
will incur more one-off effects for the planned package of measures in the
second half of 2011. At the end of 2011, Q-Cells plans to have cash and
cash equivalents of between EUR300 million and EUR350 million among others
on the basis of a reduction in working capital.
By implementing the current package of measures, continuously improving its
cost positions and further developing the strategic segments Residential
and Commercial&Industrial, Q-Cells aims to generate positive operating
income (EBIT) again in 2012.
'We are convinced that the medium-term prospects of the solar industry are
positive. Together with our customers and partners, we wish to be part of
this development,' said Nedim Cen.
CONTACT
Q-Cells SE
OT Thalheim, Sonnenallee 17-21
06766 Bitterfeld-Wolfen, Germany
WEB www.q-cells.com
Q-Cells Corporate Communications
Ina von Spies, Alberta Rohardt
TEL +49 (0)3494 6699 10121
FAX +49 (0)3494 6699 10000
EMAIL presse(at)q-cells.com
Q-Cells Investor Relations
Stefan Lissner
TEL +49 (0)3494 6699 10101
FAX +49 (0)3494 6699 10000
EMAIL investor(at)q-cells.com
About Q-Cells SE
The Q-Cells Group is one of the world's leading photovoltaics companies and
offers a wide range of photovoltaic solutions, from solar cells and modules
to solar power plants. Q-Cells's products are developed and manufactured at
its headquarters in Bitterfeld-Wolfen (Germany) and marketed via its global
sales network. It also has a second production plant in Malaysia. More than
200 scientists and engineers at Q-Cells are working to swiftly advance
solar technology and achieve Q-Cells' twin aims: driving down the costs of
photovoltaics quickly and permanently, and making solar power competitive.
The close links between R&D and production enable Q-Cells to rapidly
translate cutting-edge innovation into mass production - and underpin its
ambition to be at the forefront of photovoltaic technology. Q-Cells is
quoted on the Frankfurt Stock Exchange (QCE; ISIN DE0005558662) and also
listed on the TecDAX, the German technology index.
Executive Board: Dr Nedim Cen (CEO), Dr Marion Helmes (CFO), Hans-Gerd
Füchtenkort (CSO)
Chairman of the Supervisory Board: Prof Dr Karlheinz Hornung
End of Corporate News
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10.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Q-Cells SE
Sonnenallee 17-21, OT Thalheim
06766 Bitterfeld-Wolfen
Germany
Phone: +49 (0)3494 - 6699-0
Fax: +49 (0)3494 - 6699-199
E-mail: q-cells(at)q-cells.com
Internet: www.q-cells.com
ISIN: DE0005558662, Wandelanleihe 2012: DE000A0LMY64,
Wandelanleihe 2014: DE000A1AGZ06, Wandelanleihe 2015:
DE000A1E8HF6
WKN: 555866
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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