The company’s earnings before taxes (EBT), which grew from EUR908,000 to EUR2,780,000; and the company’s annual surplus, which reached EUR1,973,000 (previous year: EUR283,000); also developed in a correspondingly positive fashion. S.A.G. are pleased to report that this development was carried by all business areas, which all achieved positive earnings for the first time in the history of Solarstrom.
The largest share of this was once again due to the business area Project Planning and Plant Construction, which realized a improved EBIT of EUR1,766,000 (previous year: EUR1,246,000) on turnover of EUR47,419,000 (previous year: EUR21,200,000). The profit margin, which fell slightly from the previous year, was affected by a number of projects that were acquired in a later phase of development and thus generated less value. The development in the area of Partner Sales (previously: Wholesale and Franchise), which benefited considerably from the rearrangement of the previous franchise system to a partner sales system, was also impressive. Due to Solarstrom’s focus on closer ties with sales partners capable of producing an especially high level of quality, this business area was – for the first time in years – able to conclude the fiscal year with a positive EBIT in 2008: EUR151,000 (previous year: -EUR819,000) on turnover of EUR41,452,000 (previous year: EUR15,471,000).
The Plant Operation and Services area also achieved further improvement in its results. Thanks in particular to the revenue assessment and long-distance valuation efforts of the fully-owned subsidiary meteocontrol GmbH, turnover rose by 47.9% from EUR4,500,000 to EUR6,656,000, while the area’s EBIT increased disproportionately from EUR104,000 to EUR484,000. Based on the plant built in November of 2007 in Röllbach (district of Miltenberg/Spessart), Germany, the turnover of the business area Power Production grew from EUR1,865,000 to EUR2,135,000. The earnings improved correspondingly from EUR240,000 to EUR413,000 in fiscal year 2008.
Although a significant attenuation of the overall industry’s previously dynamic growth is becoming apparent in 2009 due to the still unresolved financial crisis, Kuhlmann still expects the company to be able to fulfill the turnover and result forecast for 2009 as published in November 2008.
“The successes witnessed in all of S.A.G. Solarstrom AG’s business areas underscore the sustainability of the company’s fundamental realignment,” says Dr. Karl Kuhlmann, chief executive officer of Solarstrom.
“This assumes, however, that financing conditions on the capital market don’t worsen further,” Kuhlmann says. Financing has been delayed, but the continued security and predictability of investments in photovoltaics have thus far prevented any losses.
Solarstrom still expect a weak first quarter in 2009 and a tentative recovery during the second. Apart from bad weather conditions at the beginning of the year, the reasons for this include the aforementioned delays in the financing of large-scale projects. “However, we are optimistic that the company’s newfound strength will help us attain our goals for 2009. After all, the successful restructuring is going to secure us both an increasing amount of market share and continued positive developments in turnover and other results,” Kuhlmann concludes.
