For the first half year of 2006, Q-Cells AG (QCE; WKN 555866) increased production to 112.6 MWp from 66.6 MWp a year earlier. This reflects growth of approximately 69%.
Sales, earnings before interest and tax (EBIT) and net income for the period rose significantly in the first half. Sales increased 108% to EUR 243.1 million from EUR 116.7 million in the prior-year period. EBIT and net income grew even more than sales at rates of 138% and 153%, respectively, to EUR 55.9 million (EUR 23.5 million) and EUR 37.4 million (EUR 14.8 million).
Based on these figures and the expected second half results, Q-Cells AG is raising its forecast for fiscal 2006. The company continues to expect that it will increase production to approximately 255 MWp (2005: 165.7 MWp).
Based on continued progress in optimizing products and production processes as well as somewhat improved sales conditions and cost ratios, Q-Cells now anticipates sales of approximately EUR 525 million for fiscal 2006 (2005: EUR 299.4 million), EBIT of approximately EUR 115 million (2005: EUR 63.2 million) and net income of approximately EUR 75 million (2005: EUR 39.9 million).
The export ratio increased significantly compared to the prior-year period. In the first half, Q-Cells AG generated 49.1% of its sales outside of Germany. This ratio was only 35.4% in the same period of 2005. In view of the continued growth in export demand, the company expects to increase this share to 60% by the end of 2007.
As of the end of the first half of 2006, the company had an annual production capacity of 280 MWp at its Thalheim location (equal to a nominal capacity of 350 MWp). By the end of 2006, production capacity is to increase by 56 MWp to 336 MWp (corresponding to a nominal capacity of 420 MWp) based on conversion, expansion and optimization of the existing lines I-IV. By the end of 2007, the production capacity will be increased to 432 MWp (corresponding to a nominal capacity of 540 MWp) based on the completion of the first two expansion stages of production line V.
Furthermore, Q-Cells AG now anticipates production in its core business will reach 330 MWp for 2007 (previously 316 MWp). To ensure further growth in the core business beyond 2007, Q-Cells AG concluded additional supply contracts in the second quarter of 2006 for silicon and silicon wafers with a total capacity of 430 MWp, with priority on 2009 to 2018.
As of June 30, 2006, Q-Cells AG employed 869 persons; additional hires are planned due to the capacity expansions.
The Second Quarter 2006 report and the current company presentation are available for download from the Investor Relations section of Q-Cells AG’s website.
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