Meyer Burger Technology AG — Earnings Release 2011

Aug 16, 2011

News Details

Corporate | 16 August 2011 08:58

Roth & Rau AG publishes half-year results for 2011

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

16.08.2011 / 08:58

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Roth & Rau AG publishes half-year results for 2011
- Project delays lead sales to drop from EUR 118,824k to EUR 92,821k
- EBIT of EUR -24,435k burdened by lower sales and one-off items

Hohenstein-Ernstthal, 16 August 2011 - Roth & Rau AG generated sales of EUR
92,821k in the first half of 2011 (2010: EUR 118,824k). Including changes
in stocks of finished and unfinished products and capitalised services
rendered to own account, the Group's gross performance amounted to EUR
152,875k (2010: EUR 149,600k). While the gross performance thus performed
in line with expectations, a large share of the sales budgeted for the
second quarter of 2011 could not yet be recognised as expected due to
delays in the final acceptance of several projects. This was chiefly due to
several customers postponing their delivery dates in view of the recent
decline in demand in the cell equipment markets, as well as to start-up
difficulties with the latest generation of antireflective coating equipment
(SiNA 2). A further reason for the downturn in sales was the conversion of
accounting from the percentage of completion to the completed contract
method. This means that sales and earnings may only be recognised upon
final acceptance of the equipment by customers.

Together with the change in accounting, the significant downturn in sales
due to project delays gave rise to missing earnings contributions of around
EUR 18,000k in the first half of the year. This was the main reason for the
weak earnings performance in the period under report. All in all, operating
earnings (EBIT) for the first six months of the 2011 financial year
amounted to EUR -24,435k (2010: EUR 6,060k). The Group's half-year earnings
were further burdened by one-off items of EUR 12,637k. These included
write-downs on components stocked in connection with the discontinued
turnkey business, as current market developments prevented the negotiations
concerning the sale of these components from being brought to a successful
conclusion. One-off expenses in the first half also included expenses
incurred for the CRiSP cost and structure optimisation programme, as well
as legal and advisory expenses in connection with the takeover by Meyer
Burger Technology AG. Net of these one-off items, adjusted EBIT amounted to
EUR -11,798k.

Orders on hand totalled EUR 244,279k as of 30 June 2011 (2010: EUR
351,106k). The Group received new orders totalling EUR 111,476k in the
first half. The cancellation of a major turnkey order worth EUR 94,400k in
the first quarter was followed by further cancellations of EUR 16,460k in
the second quarter. Net new orders after cancellations therefore amounted
to EUR 616k in the first half (2010: EUR 265,161k). 'The order situation
has cooled off noticeably since June 2011. We expect the subdued demand for
production equipment, particularly for use in the manufacture of
crystalline silicon solar cells in our core markets, to continue in the
coming months. New high-efficiency technologies are currently being
developed in the field of cell production, a further reason for our
customers' current reluctance to invest. We therefore expect positive
momentum from the market launch of our latest products in the fields of
heterojunction technology and reverse side passivation scheduled for the
second half of the year', explained Dr. Dietmar Roth, CEO of Roth & Rau AG.

Outlook

The earnings performance of Roth & Rau AG is expected to improve in the
second half of 2011, although the outlook remains subject to considerable
uncertainties. 'We have largely remedied the 'teething problems' still
witnessed by our SiNA 2 equipment in the first half. This means the delayed
projects can be accepted in the near future. Recognising these sales will
generate substantial earnings contributions in the second half, thus partly
making up for the losses incurred in the first half of the year', added Dr.
Roth. The company currently cannot issue any reliable forecast concerning
its expected sales volumes and resultant impact on earrings, as this will
depend on successful project handling at the Roth & Rau group companies, as
well as on further developments in the market and customer cooperation. The
measures within the CRiSP programme are being consistently upheld and will
also alleviate cost structures in the second half of the year.

About Roth & Rau AG:
Roth & Rau AG, based in Hohenstein-Ernstthal, has been one of the world's
leading suppliers of production equipment and innovative production
technologies for the photovoltaics industry for more than 10 years now. In
its photovoltaics segment, Roth & Rau focuses on providing antireflective
coating systems and a variety of advisory and technology transfer services
for the installation of complete production lines for use in the
manufacture of crystalline silicon solar cells. Further products include
thermal processing systems also used in the manufacture of crystalline
silicon solar cells, as well as coating systems and technological support
for the manufacture of thin film solar modules. Roth & Rau MicroSystems, a
subsidiary located in the Wüstenbrand district, develops and produces
process systems for plasma and ion beam enhanced thin film and surface
processing methods tailored to customers' specific needs. The customers
served by this division particularly include companies in the semiconductor
industry, R&D departments in various other industrial sectors, research
institutes and universities. The portfolio of the Roth & Rau Group is
supplemented by software products in the field of systems management,
production monitoring and maintenance and service offerings.

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

End of Corporate News

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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

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