From January to September 2005, SolarWorld AG (ISIN: DE0005108401) posted consolidated earnings after tax of EUR 33.6 (last year: 10.3) million, more than tripling last year’s profits. At EUR 247.1 million, the sales volume rose by more than EUR 100 million year-on-year (last year: 144.2). As at 30 September 2005, the sales return stood at 13.6 per cent (last year: 7.2 per cent). Earnings before income taxes totalled EUR 53.2 (last year: 16.0) million. In the first nine months, earnings before interest and taxes (EBIT) grew by more than 193 per cent to EUR 57.4 (last year: 19.5) million. The EBIT margin climbed to more than 23 per cent (last year: 13.6 per cent). Earnings before interest, taxes, depreciation and amortization (EBITDA) totalled EUR 71.2 (last year: 31.7) million. The EBITDA margin rose to 28.8 per cent (last year: 22.0 per cent).
Best quarter in the history of the company (record sales and earnings)
Philipp Koecke, CFO, comments on Q3 2005: ‘In the third quarter of 2005, net earnings grew by 185 per cent year-on-year, rising from 5.3 to 15.1 million euros – this was thus the best quarter ever in our company’s history. Our sales volume exceeded the magical 100 million euro threshold for the first time ever. Against the backdrop of consistent cost management, all business units of our group have contributed to group profit.’ Consolidated sales rose by 107 per cent year-on-year to EUR 110.5 (last year: 53.4) million. Quarterly profit before taxes totalled EUR 24.3 (last year: 8.5) million. Earnings before interest and taxes (EBIT) climbed to EUR 26.0 (last year: 9.6) million in the third quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to EUR 30.9 (last year: 13.6) million. Koecke continues: ‘Corporate growth thus significantly outperformed the market, resulting in a further increase in our headcount. From July to September, the group recruited 57 new staff members. Group headcount has risen by 125 to 741 employees since the beginning of the year.’
Further strengthening of balance sheet ratios
The SolarWorld Group’s balance sheet discloses the group’s solid financial position. Hence, liquid funds including securities grew by EUR 11.6 million to EUR 73.8 million as at 30 September compared with the status as at the end of the second quarter of 2005. Equity rose to EUR 198.7 (end of Q2: 183.5) million. The equity ratio stood at 51 per cent. The return on equity more than tripled to 16.9 per cent year-on-year in the first nine months. In the current fiscal year, the SolarWorld AG’s capital expenditure at group level already accounts for EUR 36.8 million by the end of the third quarter. The group thus consistently pursues its plans to further expand its solar production capacity. ‘With our wafer factory II, we will expand our production capacity to initially 220 megawatts (MW) by the end of 2006’, says Prof. Dr. Peter Woditsch, spokesman for the Board of Management of Deutsche Solar AG (wafer production subsidiary of SolarWorld AG located in Freiberg, Saxony). ‘The building and the infrastructure will be designed for a further increase in capacity to at least 270 MW at a later point in time.’ As at 30 September 2005, total assets amounted to EUR 391.9 (last year: 276.3) million, characterized by the group’s rapid expansion. The cash flow statement showed cash and cash equivalents of EUR 47.4 (last year: 18.2) million at the end of the period.
SolarWorld AG Board significantly lifts forecast for 2005
In response to the positive business trend in the third quarter of 2005, SolarWorld AG substantially lifted its forecast for the overall year. Frank H. Asbeck, CEO of SolarWorld AG, said: ‘We now expect consolidated sales of more than EUR 300 (previously: more than 280) million and net earnings of more than EUR 40 (previously: more than 25) million for fiscal year 2005. Consolidated earnings of Solar World AG will thus more than double year-on- year, with consolidated sales rising by more than 50 per cent. Hence, we will significantly outperform market growth.’
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