SolarWorld announces significant Q3 losses

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Module and solar kit shipments increased in the first nine months of the year to 431 MW, up from 381 MW in 2011. Despite this, due to "market distortions", the company reaped revenues of just €468.9 million, compared to €752.4 million in the previous year. Specifically for Q3, revenues slipped from €169.6 million in Q2 2012, and €218.7 million in Q3 2011, to €128.8 million.

Meanwhile, shipments including wafers fell to 470 MW, down from 576 MW in 2011. "The weak demand led to under-utilization of production capacity in Germany and the United States," said SolarWorld in a statement released.

EBIT was also significantly impacted, having dropped from €89.7 million in the first three quarters of 2011, to €-189.6 million in 2012. For Q3, EBIT increased on Q2 to €-23 million, up from €-170.4 million, but down on Q3 2011, which achieved €50.4 million.

Overall, consolidated net result improved from €-161 million in Q2, to €-68.7 million in Q3, but fell from the €-10.9 million lost in Q3 2011. For the first three quarters of 2012, it dropped significantly, from €11.2 million in 2011, to €-229.9 million.

SolarWorld has said it will introduce a number of measures to improve its competitiveness, including cutting personnel. While the company declined to divulge any concrete information, according to its balance sheet, the number of employees has already dropped from 2,700 in the first nine months of 2011, to 2,478 in 2012.

Looking ahead to the full year, SolarWorld expects to see revenues "far below" 2011’s levels and a "significantly" negative EBIT. In Q4, the company sees low demand in the German roof-mounted solar market, moderate development in Italy, and an upswing in U.S. demand.

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