Ad-hoc release: Phoenix Solar AG sets another record in revenues and EBIT in the third quarter of 2008

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Results Q3 2008 [ PDF | 47.96kb ]

Trend of revenues and EBIT above budget
First power plant contracts for the year 2009
Board of Directors again revises its guidance for the year upwards

Sulzemoos,13 November 2008 / Phoenix Solar AG (ISIN DE000A0BVU93), a leading international photovoltaic systems integrator, has set another record result at the end of the first nine months of the financial year. Accordingly, the Board of Directors has revised its guidance upwards for the entire financial year.

Over the period from 1 July to 30 September 2008, the Phoenix Solar Group more than doubled its total revenues from domestic and international business. Revenues rose from EUR 73.2 million in the third quarter of 2007 to EUR 149.3 million in the third quarter of 2008 (up 104 percent). This sharp increase was attributable to the Power Plant segment which, with its strong international business, achieved total revenues of EUR 80.9 million (Q3/2007: EUR 43.9 million) and the Components & Systems segment which contributed EUR 68.4 million (Q3/2007: EUR 29.3 million). In the third quarter, 53 percent of revenues were generated by international business. Earnings before interest and taxes (EBIT) soared by 85 percent to EUR 17.6 million in the third quarter of 2008, up from EUR 9.5 million in the previous year’s quarter. The EBIT margin (the ratio of EBIT to sales) of 11.8 percent also reached a very high level (Q3/2007: 13.0 percent). Net income for the period more than doubled to EUR 13.8 million, up from EUR 5.9 million in the year-earlier quarter (up 134 percent).

In the period from January to September 2008, the Group’s total revenues rose by 128 percent to EUR 301.1 million as against the previous year’s figure (Q1-Q3/2007: EUR 132.0 million). Of this amount 52 percent, the equivalent of EUR 155.5 million, was generated by business abroad (Q1-Q3/2007: 27 percent). Compared with the previous year’s period, international business thus grew by 330 percent. At the end of nine months, the Components & Systems segment achieved an increase of 108 percent in revenues, which advanced to EUR 137.2 million (Q1-Q3/2007: EUR 66.0 million). Revenue growth posted by the Power Plants segment came to 148 percent (Q1-Q3/2008: EUR 163.9 million; Q1-Q3/2007: EUR 66.0 million). At the end of the nine-month period, EBIT leapt 223 percent to EUR 29.1 million (Q1-Q3/2007: EUR 9.0 million), thus already exceeding guidance to date. The EBIT margin in the first nine months is therefore at a high level of 9.7 percent Q1-Q3/2007: 6.8 percent). In the reporting period, consolidated profit after tax quadrupled to EUR 21.9 million, up from EUR 5.4 million, in a year-on-year comparison. Earnings per share (EPS) calculated on this basis posted EUR 3.27 (Q1-Q3/2007: EUR 0.89). The equity ratio climbed from 33.2 percent to 52.1 percent as per the reporting date.

As compared with the previous year’s figure, orders on hand rose from EUR 134 million to EUR 275 million as per 30 September 2008. Of this amount, EUR 199 million was contributed by the Power Plants segment and EUR 76 million by the Components & Systems segment. Adjusted for work in progress, orders on hand came to EUR 132 million. Contracts worth EUR 34 million have already been signed with the Power Plants segment for 2009.

Against the background of the very successful business performance, demand in both segments and a healthy order book, the Board of Directors has again revised its guidance for the financial year 2008 upwards, despite the difficulty of predicting the development in the financial markets. With total revenues now budgeted at EUR 380 million, an EBIT of around EUR 33 million is anticipated.

The Interim Report as per 30 September 2008 will be released on 13 November 2008 and can be downloaded from the company web site at www.phoenixsolar.com under the heading Investor Relations, Financial Reports. The figures drawn up as per 30 September 2008 were subject to a review by the external auditor.

Disclaimer
The content of this press release is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall undertake no liability whatsoever for any loss in connection with this press release or the information made available. This also applies particularly to any eventual loss in connection with the shares of Phoenix Solar AG.

This document contains forward-looking statements on future developments which are based on management’s current assessment. Words such as “anticipate”, “assume”, “believe”, “estimate”, “ expect”, “intend”, “can/could”, “plan”, “project”, “forecast”, “should”, and similar terms are indicative of such forward-looking statements. Such statements are subject to certain risks and uncertainties which are mainly outside the sphere of influence of Phoenix Solar AG, but which have an impact on the business activities, the success, the business strategy and the results. These risks and factors of uncertainty include, for instance, climatic change, changes in the state subsidisation of photovoltaics, the introduction of competitor products or technologies of other companies, the development of the planned internationalisation of business activities, fierce competition as well as rapid technological change in the photovoltaic market. If one of these or other factors of uncertainty or risks should occur, or if the assumptions underlying the statements should prove incorrect, the actual results may diverge substantially from the results in these statements or implicit indications. Phoenix Solar AG does not have the intention nor will it undertake any obligation to realise forward-looking statements on an ongoing basis or at a later point in time as this is entirely dependent on circumstances prevailing on the day of their release.

In some countries, especially in the United States of America, the dissemination of this press release and the information contained therein may be restricted or prohibited under the law. This press release is therefore expressly not intended for persons resident in the United States of America or any other legal system under which such an offer or solicitation is not permissible, or for persons for whom such an offer or invitation would constitute a breach of the law.

This is an English translation of the German original. Only the German version is binding.

Your contact

Phoenix Solar AG
Hirschbergstraße 8
D-85254 Sulzemoos

Investor Relations
Anka Leiner
Tel. +49 (0)8135 938-315
Fax +49 (0)8135 938-399
a.leiner@phoenixsolar.de
www.phoenixsolar.com