The SolarWorld AG Executive Group has increased its forecast for the coming year, expecting a group-wide profit growth of 40 (previously 20) per cent in line with the expected growth in sales of also 40 per cent. This forecast is inclusive of the Shell Group’s solar assets taken over with effect from July 1, 2006.
In the second quarter, the SolarWorld Group continued the positive earnings development of the prior quarter. According to preliminary calculations, group profits in the second quarter increased over the same period last year by 113.0 per cent to 23.6 (previous year: 11.1) million EUR. In the first half of 2006 profits grew by 116.7 per cent to 40.1 (previous year: 18.5) million EUR. Group sales went up in the second quarter by 28.8 per cent to 101.3 (previous year: 78.7) million EUR and from January through June by 35.1 per cent to 184.6 (previous year: 136.6) million EUR.
Against the background of a persistently strong domestic and foreign demand, the group profited from its high margin positioning along the entire solar value chain. Thus, group-wide earnings before interest and taxes (EBIT) increased in the second quarter of 2006 by 111.0 per cent to 38.0 (previous year: 18.0) million EUR and in the first half by 106.5 per cent to 64.8 (previous year: 31.4) million EUR. The EBIT margin rose in the second quarter to 37.5 (previous year: 22.9) per cent.
Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed in the second quarter by 94.8 per cent to 43.9 (previous year: 22.6) million EUR and in the first half of the year by 89.6 per cent to 76.4 (previous year: 40.3) million EUR. All business units contributed to this result.
On the whole, the company again outperformed the rest of the market. The export rate went up in the group to 38.7 (prior year: 27.7) per cent. In the domestic market the solar technology and production group reported a growth rate of 14.6 per cent. The equity ratio amounted to 64.0 (previous year: 52.0) per cent as at 30 June 2006.
The SolarWorld Group is expecting a constant margin in the second half of 2006. "Frank H. Asbeck, Chairman and CEO of SolarWorld AG stated, "The efficiency gains and economies of scale resulting from the expansion of our production enable us to cut costs while preserving our profitability."
In Germany, the largest German solar power group is expecting a growth rate of 15 per cent for 2006. The company thinks that the German market will grow by 10 per cent. "Through the expansion of our capacities we will be able to grow over-proportionately ousting imports from Japan and China," forecasts Asbeck. This incidentally also holds true for other German manufacturers and is evidence of the effects of the local support that leads to the creation of production capacities and solar jobs in Germany.
At the same time, the company shows with its successful internationalization that the demand in more and more foreign markets is rapidly increasing. For 2006, SolarWorld AG expects an export rate of more than 40 per cent. Until 2008, the export share should go up to 70 per cent. Asbeck continued, "In markets like the USA, for example, SolarWorld AG as the local market leader will be able to benefit from the attractive incentive programs offered there as a German company."
The SolarWorld AG group is the only fully integrated solar power company in the world that is exclusively dedicated to solar energy.
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