Berlin, March 31, 2011, SOLON SE, Berlin, Germany, today presented its 2010 annual report. Fiscal year 2010 was characterized by robust development in the Company's core markets. The reduction in solar subsidies during the year and related pull-forward effects led not only to unexpectedly strong demand for small solar installations in Germany, but global activities in power plant construction picked up significantly, in particular in Italy and the U.S. SOLON benefited from both trends. The business in photovoltaic installations had the greatest impact on the Company's business activities in the first half of 2010, while activities in the area of turnkey power plants dominated in the second six months. The contribution of the power plant business to total revenues therefore increased to 39% compared to the previous year's weak performance of 28%. The share of revenues generated outside of Germany rose to 65% (previous year: 48%).
The SOLON Group increased revenues in fiscal year 2010 by 76% to €619.9 million (previous year: €353.2 million) and closed the year as planned with a break-even EBIT of €0.4 million (previous year: loss of €199.2 million). The consolidated net loss also improved significantly compared to the year before to €19.8 million (previous year: €271.6 million). However, increased financing and restructuring expenses and special factors related to the write-off of the equity interest in the U.S. solar cells manufacturer SpectraWatt Inc. and a drawing on a guaranteed credit in the Italian project business totaling approximately €11 million represented a burden. Earnings per share improved to €-1.31 (previous year: €- 21.68).
Net debt at year-end 2010 came to €369.1 million (December 31, 2009: €343.9 million). With significantly higher sales activity, working capital increased slightly year-on-year to €172.5 million (December 31, 2009: €154.9 million). The working capital ratio in relation to the revenues of the last 12 months thus improved to 28% (December 31, 2009: 44%).
Photovoltaic installations with total output of 278 MW were sold in fiscal year 2010, representing a year-on-year increase of 100% (previous year: 139 MW). At year-end 2010, the total number of employees at SOLON's locations within and outside of Germany was 912 (December 31, 2009: 864) SOLON's Management Board aims to systematically continue the turnaround process started in fiscal year 2010. In order to achieve this aim, the expansion of operating activities will be continued and the Company's net debt will be gradually reduced. For the current fiscal year, the SOLON Management Board will endeavor to increase consolidated revenues by double digits once again and generate a positive operating result as well as break-even net income.
Source: SOLON SE