Centrotherm Group

centrotherm reports on 2012 and 2013 abbreviated financial years

editor, 31 October 2013

- Revenue mirrors collapse in photovoltaic capital goods market

- High impairment charges and extraordinary items burden results

- Restructuring and efficiency program cuts fixed costs

- Strengthened liquidity and equity base

The revenue of the centrotherm Group amounted to EUR 69.2 million in its 2013 reporting period (October 1, 2012 until May 31, 2013), compared with EUR 149.2 million during the first nine months of 2012 ("2012 reporting period"). This marked revenue decline is due to the sharp contraction in the photovoltaic equipment market that impacted not only centrotherm but also its competitors. The export share dropped to 80.2 % in the 2013 reporting period and 67.1 % in the 2012 reporting period, compared with 95.4 % in the 2011 financial year. Total operating performance amounted to EUR 68.6 million in the 2013 reporting period, compared with EUR 128.2 million in the 2012 reporting period. Earnings before interest, tax, depreciation and amortization (EBITDA) stood at a loss of EUR 25.3 million in the 2013 reporting period. Besides the lower operating performance, EBITDA was especially burdened by extraordinary items connected with the achieved restructuring. EBITDA in the 2012 reporting period was also principally burdened by a high level of valuation adjustments applied to inventories, and amounted to a loss of EUR 107.8 million. The Group incurred an operating loss before interest and tax (EBIT) of EUR 29.7 million in the 2013 reporting period, and a loss of EUR 375.8 million in the 2012 reporting period. EBIT in the 2012 reporting period was particularly hit by a high level of depreciation, amortization and impairment charges totaling EUR 268.0 million. Most of this amount reflected EUR 243.7 million of impairment charges. These impairment charges arose from a new appraisal in the measurement of intangible assets and of property, plant and equipment following the significant collapse in the photovoltaic market. The Group incurred a total consolidated net loss of EUR 77.4 million in the 2013 reporting period, compared with a total consolidated net loss of EUR 372.1 million in 2012 reporting period.

New order intake and order book position

Total new order intake amounted to EUR 163.2 million in the 2013 reporting period. Of this amount, EUR 123.2 million was attributable to the Silicon segment, EUR 35.4 million to the Photovoltaics & Semiconductors segment and EUR 4,5 million to the Thin Film & Customized Systems segment. The order book position amounted to EUR 305.7 million as of May 31, 2013 reporting date.

Emergent success of the restructuring

The centrotherm Group restructured itself in the 2012 and 2013 reporting period, focusing on its strengths in production technology and processes for the photovoltaic, semiconductor and microelectronics industry. "With our concentration on our core competencies, we aim to return centrotherm to a strong position for the future, and to further expand our market position: as a technology leader for the photovoltaic industry and as a specialist for the semiconductor and microelectronics industry," emphasized the members of the Management Board. In this context, the semiconductor and microelectronics area is to be further diversified and expanded as the Group's second pillar in order to better offset future negative market trends, as currently in photovoltaics. centrotherm has also utilized this reorganization and restructuring phase to create a streamlined and efficient structure and organization with optimized corporate processes for future operations.

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