Sunways AG: Demand-related adjustment of prognosis for the fiscal year

In the first months of 2011, the demand for products of Sunways AG (SWW:GR, SWWG.DE, ISIN DE0007332207) was weaker than expected. Based on preliminary figures, sales generated in the first quarter 2011 were € 22.2 million (Q1/2010: € 44.3 million). Gross performance is expected to be € 44.3 million (Q1/2010: € 49.6 million). The operating result (EBIT) in the first quarter 2011 is anticipated to be € -3.5 million (Q1/2010: € 4.7 million).

The weak sales and earnings development in the first three months of the current year is mainly due to the weak market demand and the resulting unexpectedly high inventory levels of dealers and installers. A major contribution to the Group’s gross performance was made by the solar cell shipments to LDK Solar forming the basis for the module production cooperation commenced in late 2010.

Against the background of the markedly weaker demand during the first months as well as the high supply volume and resulting pressure on prices, Sunways AG does not expect to be able to reach the sales growth in the double-digit percentage range originally targeted for the fiscal year 2011. The company does, however, still anticipate to generate an operating (EBIT) margin in the lower single-digit percentage range.