Brilon, November 7, 2011: CENTROTEC Sustainable AG’s earnings for the third quarter of 2011 will reveal non-recurring, non-cash effects as a result of an adjustment to the value of the investment in CENTROSOLAR and the streamlining of the business portfolio for photovoltaic activities. At its meeting today, the Management Board of CENTROTEC resolved that due to the uncertainty of the photovoltaic market an impairment of approx. EUR 15 million will be booked for the valuation of the 26 % interest in CENTROSOLAR Group AG, leading at the level of the financial result to an exceptional write-down on the value of the investment by the same amount. In addition, business for integrated energy roof systems for photovoltaics and solar thermal is to be discontinued and is available for sale; sales of integrated photovoltaic systems are to be largely halted. In view of growing competition from Asian photovoltaic suppliers and the resulting pressure on prices, the necessary margins especially for high-end energy roof systems of a high aesthetic standard cannot be achieved in the market segments that CENTROTEC addresses. Furthermore, minor-scale non-core activities that do not form part of core business such as the Swiss spinal implants business are to be discontinued. The latter leads to an impairment of approximately EUR 2 million. Overall, the non-recurring, non-cash write-downs that do have an impact at EBIT level, mainly from the cessation of photovoltaic activities, amount to about EUR 9 million.
For the financial year in progress, revenue will reach the lower limit of the forecast range of EUR 520 million, compared with EUR 480 million for the previous year. Over the full year, the operating result (EBIT) most recently forecast at EUR 40 million will be approx. 25 to 35 % down on the prior-year figure of EUR 36.2 million. Earnings per share (EPS), most recently forecast to reach EUR 1.35 to 1.45, will now be negative by a few cents (previous year: EUR 1.54) mainly because of the write-down on the CENTROSOLAR investment value and the profit attributable to the equity investment.
Following the streamlining of the business portfolio, especially in the area of photovoltaic business, the positive general situation and the strong market position of CENTROTEC’s companies in their core business areas lead the company to expect the fundamentally positive business trend of recent years to continue in 2012. The targets for the operating result (EBIT) that will be missed in 2011 should therefore certainly be achieved in the coming financial year 2012. As usual, a precise annual forecast for 2012 will be published at the start of the new financial year; the detailed figures for Q3 2011 will be published on November 10.
CENTROTEC Sustainable AG
CENTROTEC Sustainable AG and its subsidiaries enjoy a presence in over 50 different countries. The principal group companies are Wolf Heiztechnik, Brink Climate Systems and Ned Air in the Climate Systems segment, which have specialised in heating, climate control and ventilation technology e.g. in the form of solar thermal systems, heat pumps, CHP units, climate control and ventilation systems with heat recovery for residential and commercial buildings, as well as Ubbink and Centrotherm, which have focused on plastic gas flue and air ducting systems and solar system components in the Gas Flue Systems segment. CENTROTEC is consequently Europe’s only listed full-service provider of solar thermal systems and energy-saving solutions for buildings.