Phoenix optimistic despite loss

Losses at Phoenix Solar widened amid the company’s restructuring, but it confirmed guidance for a further reduction of its full-year operating loss.

The German PV system-integrator incurred a loss before interest and tax (ebit) of €4.2m ($5.5m) in the first quarter, compared with a €1.1m loss a year earlier. Its net loss reached €5.8m, after a €1.2m loss in the corresponding period of 2012.

Results were dragged down by provisions of €1.9m earmarked for severance payments in connection with a staff reduction due to the discontinuation of the trading and project business in Germany.

On the upside, the expected charges from the repositioning of the business in Germany have been fully absorbed in the first quarter, Phoenix Solar says.

Despite the losses, chief executive Bernd Köhler is relatively upbeat.

“We note that almost all subsidiaries are developing as expected, or better,” he says. “This prompts us to confirm our forecast for the 2013 financial year: we continue to anticipate revenues of between €160m and €190m, and a further reduction in the operating loss [ebit] to a range between €7m and €2m, after restructuring expenses.”

Consolidated revenue in the first three months was down 19.4% to €30.6m.

Phoenix shares climbed 2.3% to €1.374 in Frankfurt.

The company repeated that it will increasingly focus on strongly growing regions of Asia and the US, and said that of its orders of about €70m at the end of the first quarter, 90% came from exports.