SULZEMOOS (dpa-AFX) - Shares of Phoenix Solar AG (PS4G) climbed around 15 percent on Frankfurt's Xetra after the photovoltaic system integrator reported Monday a significantly narrower loss in its financial year 2013, despite lower revenues, as the company realigned its business towards growth regions in U.S. and Asia. Going ahead, the company projects to report earnings in fiscal year 2014 with higher revenues.
The company said it closed the year 2013 with an operating result close to breakeven, after two years of writing high losses.
Phoenix Solar's earnings before interest and taxes or EBIT was negative 1.4 million euros in 2013, significantly narrower than last year's loss of 31.8 million euros. The company said the result included the cost of the last restructuring phase amounting to 1.9 million euros. The EBIT margin stood at negative 1 percent, compared to last year's negative 20.5 percent.
For the year, the company reported a consolidated loss result attributable to the shareholders of 10.7 million euros, compared to last year's loss of 37.3 million euros. Loss per share narrowed to 1.45 euros from 5.06 euros last year.
The company attributed the positive development to the strategic realignment towards growth regions in the USA and Asia, which was completed in February last year.
Consolidated revenues, however, declined 9.1 percent to 141.2 million euros from 155.4 million euros in 2012.
Consolidated orders on hand amounted to 65 million euros as of December 31, a decrease of 13.2 percent from last year's 74.9 million euros.
Sales of photovoltaic power plants and modules were 126 MWp in 2013, down 3.1 percent from 130 MWp in 2012.
International revenues grew 14.3 percent year-over-year to 124.6 million euros, and accounted for 88.2 percent of sales revenues, higher than 70.1 percent last year.
While sales in both the sub-markets of U.S. and Asia regions more than doubled from last year, the sales revenues in the Europe region plunged from last year. The company attributed the fall in revenues from Europe to considerable deterioration in political framework conditions. Revenues in Germany were 16.7 million euros, down from 46.4 million euros in the previous year.
The Components & Systems Segment's revenues fell 21.8 percent, and contributed 40.2 percent to consolidated revenues, down from last year's 46.6 percent. The Power Plant Segment's revenues edged down 1.8 percent, contributing 59.8 percent to total revenues, compared to last year's 53.4 percent.
Looking ahead, CEO Bernd Köhler said, 'Following radical restructuring in 2013, further progress hinges on both subsidiaries consolidating their sales successes in 2013 and continuing their expansion. If this succeeds, our return to the profit zone will be accomplished in line with our planning.'
Looking ahead for fiscal year 2014, Phoenix Solar expects to generate a positive operating result or EBIT again in a range of 2 million euros to 5 million euros with its lean cost structure, and the absence of extraordinary expenses for restructuring.
For the year, the company projects revenues in the range of 150 million euros and 160 million euros, representing an increase of around 10 percent, on the basis of expected sales of 130 MWp to 140 MWp.
Phoenix Solar shares gained 0.54 euros or 15.24 percent, and is trading at 4.10 euros.
Copyright RTT News/dpa-AFX