Meyer Burger Technology AG — Earnings Release 2011

Nov 7, 2011

News Details

Ad-hoc | 7 November 2011 18:30

Roth & Rau AG: Difficult market climate and one-off items weigh on quarterly earnings

Roth & Rau AG / Key word(s): Preliminary Results

07.11.2011 18:30

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Roth & Rau AG: Difficult market climate and one-off items weigh on
quarterly earnings

Hohenstein-Ernstthal, 7 November 2011 - The marked deterioration in the
solar energy market climate in recent months has impacted significantly on
operations and key earnings figures at Roth & Rau AG. Based on preliminary
figures, consolidated sales for the first nine months of 2011 amounted to
EUR 146 million (2010: EUR 189.2 million), while earnings before interest
and taxes (EBIT) amounted to EUR -76 million (2010: EUR 3.0 million).
One-off items of EUR 58 million represent the prime cause of these highly
negative earnings figures for the current financial year to date.

In the first half of the year, Roth & Rau AG had still expected the market
to stabilise at a low level. However, the uncertainty surrounding the
future structure of solar promotion programmes in key European markets in
the third quarter led to a further drastic decline in demand for solar
modules and systems. In conjunction with existing surplus market capacity,
numerous international cell and module manufacturers have substantially cut
back their production capacities. Furthermore, financing terms for new
solar projects have deteriorated significantly on account of increased
global economic risk and uncertainty on the financial markets, as a result
of which companies have postponed or even cancelled planned capacity
expansion investments.

Against this backdrop, it was not possible to complete most of the projects
currently underway in the third quarter of 2011 on schedule, as several
customers delayed final acceptance of the products. This impacted on the
company's sales and earnings strength. It was also not possible to
implement the sale of inventories budgeted for the third quarter in the way
originally planned, thus leading to impairment requirements. A further
consequence of the market turbulence is that the creditworthiness of
several customers has deteriorated significantly, as a result of which Roth
& Rau has been obliged to review and adjust the value of individual
receivables. Based on preliminary figures, consolidated sales amounted to
EUR 54 million in the third quarter of 2011, thus falling 24% short of the
previous year's figure (2010: EUR 70.4 million). Preliminary EBIT, which
amounted to EUR -52 million, was negatively affected by one-off items of
EUR 45 million. This figure includes write-downs of trade receivables and
inventories, as well as provisions for contractual risks and structural
measures to be implemented. Furthermore, it was necessary to post
impairments of intangible assets.

The Management Board cannot exclude the possibility of further earnings
risks arising in the current fourth quarter. These could lead to additional
one-off items of around EUR 15 million.

Countermeasures already in implementation
Roth & Rau has already reacted to the significant downturn in demand and
introduced short working hours in its production divisions, initially for a
limited period of half a year. This means that the company will be able to
respond flexibly, and at short notice if need be, to any potential recovery
in its customers' willingness to invest.

The CRiSP cost and structure optimisation programme is now under review by
the new Management Board at Roth & Rau AG, with its main components being
maintained and accelerated. The programme was introduced with the aim of
creating more flexible long-term cost and organisational structures to
enhance the company's ability to cushion increasingly frequent fluctuations
in demand in the solar industry.

Roth & Rau AG will be publishing its detailed interim report as of 30
September 2011 on 15 November 2011.

Contact:
Roth & Rau AG
Prof. Dr. Silvia Roth
Tel.: +49 (0) 3723/671-3333
E-mail: investor@roth-rau.de

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Language: English
Company: Roth & Rau AG
An der Baumschule 6-8
09337 Hohenstein-Ernstthal
Germany
Phone: 03723 6685-0
Fax: 03723 6685-100
E-mail: info@roth-rau.de
Internet: www.roth-rau.de
ISIN: DE000A0JCZ51
WKN: A0JCZ5
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of Announcement DGAP News-Service

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