Aleo Solar Announces Further Slow Down

aleo solar AG is anticipating consolidated sales to be considerably lower than previously expected, amounting to approximately EUR 280 million, and consolidated profit to decline further for the business year 2012, based on initial indications for the third quarter, which ended on 30 September 2012.

The third quarter was marked by negative sales trend, especially on the German, Italian and English solar markets, and special circumstances on the earnings line. Contrary to expectations, the trend towards weaker business has intensified once again: the price deterioration caused by the tariff reductions has continued on these markets. Accordingly, the company expects turnover to be approximately 50% lower in the third quarter of 2012 than it was in the third quarter of 2011. Due to the change in the environment, the outlook, together with the business or company values of the cash-generating units, was reassessed during the third quarter based on the figures from mid-2012. This resulted in an extraordinary depreciation in asset values of approximately EUR 13 million as of 30 September 2012. Moreover, the termination of the joint venture in China will result in a write-down of approximately EUR 11 million for the holding in the third quarter of 2012.

The company had already reduced its expected turnover from EUR 410 million to EUR 370 million on 2 August 2012. An acceleration in the negative market trend after the second quarter caused aleo solar AG to be much more pessimistic in assessing its expected consolidated sales and results by the end of the year.