Phoenix Solar lowers revenue and EBIT expectations for 2011

The Board of Phoenix Solar AG has reduced its revenue and EBIT forecasts for 2011: Expect only a turnover of 350 to 400 million euros - with EBIT -42 to -49 million euros. Reason, the current market and price development, which is not very encouraging. Dominant cause for the emerging high losses are due to inventory write-downs of an unbroken fall in prices for solar modules.

So far, Phoenix Solar has had over the previous year slightly declining group sales: expected (€ 635.7 million in 2010 sales), without giving a specific forecast EBIT. The company was following a weak first half of an increase in demand in September and a year-end rally in the fourth quarter was largely stable module prices is assumed. The revised forecast reflects a weaker than expected market recovery in the second half of 2011, especially in the current key market Germany. In addition, the expected year-end rally at the present time can not be foreseen. Short-term cost-cutting measures have already been initiated.

Currently, the Board arbeiet on adjusting the business model as well as the identification of further cost reduction potential with the goal in fiscal 2012 to reach back to profitability.