Substantial delays in capital outlay decisions in the industrial market and the postponement of orders under joint development agreements (JDAs) with defense programme also took their toll. The share of product sales in total sales increased from 75.3% in first quarter of 20098 to 84.5% in the period under review.
EBIT fell to minus EUR1.2 million in first quarter of 2009in the wake of the declining sales (Q1/08: minus EUR0.41 million). Gross margin for first quarter of 2009decreased only slightly to 18.5% despite the substantially weaker sales volume (first quarter of 2008: 18.9%). The company’s continuing efforts to systematically reduce production costs of its EFOY fuel cells and keep a tight rein on expenses helped prevent any further loss of gross margin.
Cash and cash equivalents stood at EUR42.5 million as of March 31, 2009 (December 31, 2008: EUR45.6 million).
EFOY unit sales totaled 1,121 in the first quarter of 2009 (Q1/08: 1,783), a 37.1% drop mainly impacted by the economic crisis in the leisure sector.
Customers in the market for off-grid industrial applications continue to push back decisions on capital spending projects. Despite the company’s progress tapping this market with its new EFOY Pro Series product line and a host of pilot projects, the performance in the industrial market was not sufficient to compensate for the steep decline suffered in the leisure market. A number of projects in the defense market were delayed, which eroded sales under joint development agreements (JDAs).
SFC made an impressive debut in the field of auxiliary power units for special purpose vehicles, a new market for the company, with an order from Volkswagen AG for over 200 EFOY fuel cell systems. As the number of electronic and electrical devices used without the availability of a power outlet grows in these vehicles, the dependable electricity offered by the EFOY fuel cell offers customers a compelling advantage with a level of convenience, environmental soundness and uncompromised reliability that is unmatched by any other technology currently available in the market.
For the 2009 business year the management board continues to aim for growth in the industry markets. An important strategic goal is to broaden SFC’s sales basis in order to make the company less dependent upon the distinctive seasonal and economic fluctuations of the leisure market.
Minimized stock holding at leisure retailers, as well as continued postponement of joint development orders in defense, bear a considerable risk that SFC will not achieve sales growth in 2009 compared to the year before. The management board has therefore created an extensive cost reduction program, the immediate implementation of which shall contribute to stabilizing the operating result (EBIT) on the 2008 level.
