LUXEMBOURG & ZWANENBURG, Netherlands--(BUSINESS WIRE)--3W Power/AEG Power Solutions:
|(in € million)||Q1 2012||Q1 2011||Δ in %|
- Q1 orders of €91.1 million, 3.0% below Q1 2011, but 14.6% up on Q4 2011 (€79.5 million), with a book-to-bill ratio of 1.1 indicating resuming growth
- Q1 orders in RES of €45.5 million, 15% up on Q1 2011 (€39.6 million), underpinning continued growth momentum in renewables
- Q1 revenues of €83.5 million slightly below previous year after low order intake in the RES business segment in Q4 2011 due to project financing delays of key solar customers
- EBITDA of -€2.8 million mainly due to low solar volumes and restructuring charges in the telecom converter business. Figures include €1.8 million of one-time charges
- 3W Power reconfirms its 2012 expectations of revenues of €430 to €460 million and an EBITDA margin of 9% to 11% resulting from margin improvements in the EES business segment and the sales pipeline in RES for the second half of 2012
3W Power, the holding company of AEG Power Solutions (AEG PS), today issued preliminary results for Q1 2012. Order intake was down 3% year-on-year, but up 14.6% compared to the previous quarter. Revenues for the first quarter were also down by 3% at €83.5 million (Q1 2011: €86.4 million) and EBITDA was €-2.8 million (Q1 2011: €2.3 million), which includes one-time expense items of €1.8 million. One-time items consist of restructuring charges for the telecom converter business, write-off of receivables due to a solar customer insolvency and certain legal fees.
“Q1 was negatively impacted by a temporary delay in solar projects due to the financial crisis and by underperformance in our telecom converter business. With resuming growth, our RES business segment will return to double-digit EBITDA margins, and with the restructuring of our DC telecom converter business unit (CVT), our EES business segment will return to positive EBITDA margins in Q2. In addition, shared cost will be under strict scrutiny for the remaining quarters. As of Q2, AEG Power Solutions will be back on its profitable growth track”, comments Horst J. Kayser, CEO of 3W Power/AEG Power Solutions.
RES Business Segment
Due to the well diversified global positioning of the Renewable Energy Solutions (RES) segment and a strong technology base designed to take advantage of emerging applications in renewables, orders for the RES segment as a whole were up 15% year-over-year.
The strong order intake in the Power Controller business unit in Q1 2012 is based on two important wins for the delivery of power controller equipment to the polysilicon industry. AEG Power Solutions has been selected because of its outstanding technological leadership and will deliver its innovative Thyrobox M power supply solution to a poly plant in Asia and a poly plant in EMEA in 2012 and 2013 respectively. In addition, AEG PS has booked an important order for its innovative Thyrobox H2 hydrolysis power supply for a 6 MW hybrid power plant in Northern Germany. It will remain a strategic priority of RES to diversify the Power Controller business beyond polysilicon applications. While this order intake is encouraging, the continued weakening of the spot market for polysilicon for our customers indicates an oversupply situation that will have to be closely monitored over the next few quarters.
Orders in the Solar business unit for Q1 2012 were at a similar level for Q1 2011 due to successful positioning in growth regions. As announced, orders in India are already above 2011 full year levels and orders from growth regions (Eastern Europe, India, Southern Africa, USA) are expected to offset and over-compensate expected market contractions in Western Europe.
RES revenue for the quarter was €33.0 million compared to €38.2 million in Q1 2011. As sales in the Power Control Systems business unit were up 40% in Q1 2012 compared to Q1 2011, RES’ revenue decline was driven by an expected revenue decrease in the Solar business unit in Q1 2012 compared to the same period last year after low order intake in Q4 2011. The shortfall was specifically caused by a delay in deliveries to large key customers, due to customer difficulties in securing financing given the European debt crises. However, deliveries resumed towards the end of Q1, which should bode well for Q2 and beyond.
EES Business Segment
In Energy Efficiency Solutions (EES), the Group achieved revenue of €50.5 million in Q1 2012 (Q1 2011: €48.2 million). Growth was mainly driven by the strong global strategic position of AEG PS in its core segments of the industrial UPS business, where sales were 14% above Q1 2011 performance.
Order intake for Q1 2011 in EES was 16% below previous year Q1. The order shortfall is specifically caused by traditionally lower Q1 telecom activity and additional cutbacks and delays in certain telecom customers’ investment plans. Orders are expected to recover in Q3 and Q4 for telecom sales to reach previous full year levels.
EBITDA for EES in Q1 2012 was €-0.8 million (Q1 2011: €-1.1 million). However, Q1 2012 EBITDA was break-even excluding the restructuring charge of €0.9million for the telecom converter business. EES will return to positive EBITDA in Q2 as 3W Power expects gross margin will continue to improve due to product cost improvements and above-average growth of profitable service business.
“We remain focused on executing our profitable growth agenda”, said Horst J. Kayser. We are excellently positioned both regionally and technologically to capture opportunities in the renewable markets, especially in growing global solar markets and the trend towards electrical energy storage and smart grid solutions. For 2012, the company continues to anticipate growth in its key markets and reaffirms its expectation of revenues in the range of €430 to €460 million and an EBITDA margin in the range of 9% to 11%.
About 3W Power/AEG Power Solutions:
3W Power S.A. (WKN A0Q5SX / ISIN GG00B39QCR01), based in Luxembourg, is the holding company of AEG Power Solutions Group. The Group is headquartered in Zwanenburg in the Netherlands. The shares of 3W Power are admitted to trading on Frankfurt Stock Exchange (ticker symbol: 3W9) and the warrants are traded on NYSE Euronext, Amsterdam (ticker symbol: 3WPW).
AEG Power Solutions Group is a global provider of power electronic systems and solutions for all industrial power supplies and offers one of the most comprehensive product and service portfolios in the area of power conversion and power controlling. The two complementary operating business units Renewable Energy Solutions (RES) and Energy Efficiency Solutions (EES) are serving customers worldwide. The RES product and service portfolio consists of systems and solutions for solar power plants like solar inverter, monitoring and control systems as well as power controller. The EES product and service portfolio includes high performance uninterruptable power supplies (USPs), industrial power controller and DC-converter.
Thanks to its distinctive expertise, bridging both AC and DC power technologies and spanning the worlds of both conventional and renewable energy, the company creates innovative solutions for smart grids.
AEG PS’ footprint is global including 17 subsidiaries and competence centers around the world, employing 1,700 employees.
For more information go to: www.aegps.com.
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