The first quarter of 2009 fell short of expectations. The long and harsh winter in southern Germany had a negative impact on demand for solar energy systems, as did the continuing lack of sufficient funding for larger photovolatics projects. Total operating performance fell 64% to EUR70.2 million (first quarter of 2008: EUR195.5 million). In a timely response to the decline in sales, SOLON SE has lowered production at all sites since the beginning of the year. As a result, in the first quarter of 2009 the company produced solar modules with a total output of 18 MWp only. The components segment contributed 61% to total Group revenue in the first quarter, while the share of revenue attributable to the System Technology segment fell to 39%. Export sales accounted for more than 50% of Group revenue.
EBITDA declined to a loss of EUR16.2 million (first quarter of 2008: EUR15.5 million), while EBIT fell to a loss of EUR20.7 million (first quarter of 2008: EUR12.5 million).
While demand for solar modules has been on the rise again in the second quarter, the power plants business is still suffering from the ongoing critical situation in project finance. The company therefore assumes that SOLON will also finish the second quarter with a loss. A possible write-down on the investment in the French silicone project SilPro would additionally reduce second quarter earnings.
