DGAP-News

Phoenix Solar Aktiengesellschaft expands its international business in the third quarter

Phoenix Solar Aktiengesellschaft  / Key word(s): Interim Report

10.11.2010 07:00

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Phoenix Solar AG expands its international business in the third quarter

* International business dominates revenues with a share of more than 55
percent
* As expected, domestic business weaker due to  pull-in effects in the
first half-year
* Revenues achieved at the end of the third quarter almost match full year
2009 revenues; EBIT considerably higher

Sulzemoos 10 November 2010 / Phoenix Solar AG (ISIN DE000A0BVU93), a
leading photovoltaic system integrator listed on the German TecDAX, is
today presenting its Interim Report as per 30 September 2010. The main
event determining the third quarter of the current financial year was the
unscheduled reduction of between 8 and 13 percent in the feed-in tariffs
for photovoltaic electricity in Germany on 1 July 2010. In line with
expectations, domestic demand subsequently diminished in the summer months.
In the reporting quarter, Phoenix Solar concentrated first and foremost on
building up its business in European countries outside Germany. As part of
the Group´s ongoing strategy of internationalisation, the US subsidiary
became operational in September, and a new office was founded in Malaysia.

International business dominates the third quarter
The reporting period from 1 July to 30 September 2010 was dominated by
international business with a share of 55.5 percent of revenues as compared
with only 7.6 percent in the year-earlier period. Of the Phoenix Solar
Group´s total revenues, which came to EUR 95.3 million, EUR 52.8 million
was generated by international business (Q3/2009: EUR 6.8 million). Total
revenues rose by an overall 6.2 percent (Q3/2009: EUR 89.7 million). Total
revenues were attributable as follows: 56.5 percent to the Components &
Systems segment and 43.5 percent to the Power Plants segment. Despite the
downturn in domestic demand, Phoenix Solar increased module sales by almost
20 percent to a peak power of 47 megawatts (MWp).

The Components & Systems segment was particularly affected by the slowdown
in demand. Revenues in this segment fell by 29.4 percent to EUR 53.8
million in the third quarter (Q3/2009: EUR 76.2 million). In contrast, the
Power Plants segment tripled revenues to EUR 41.5 million (Q3/2009: EUR
13.5 million).

Consolidated earnings before interest and taxes (EBIT) climbed from EUR 3.0
million in the third quarter of 2009 to EUR 4.3 million in the reporting
quarter. The EBIT margin (ratio of EBIT to revenues) grew to 4.5 percent,
up from 3.3 percent in the previous year´s quarter. After tax, consolidated