Aleo Solar AG (AS1), a German maker of solar modules, fell the most in more than two years in Frankfurt after it reported an 82 percent decline in nine-month profit and forecast a loss for the full year.
Aleo Solar slid 7.2 percent to 23.95 euros by the close of trading, the steepest drop since June 2009. Operating profit slumped to 7.4 million euros ($10.1 million) from 40.3 million euros, Aleo Solar said today in a statement. It cited low demand for panels and pricing pressure due to overcapacity in the global solar market.
Solar panel makers including Solarworld AG (SWV) and Conergy AG have struggled with cuts in subsidies for renewable energy and weaker demand. They are also under pressure from Chinese manufacturers that have boosted capacity even as international prices tumbled.
The company, based in Oldenburg and 86 percent owned by Robert Bosch GmbH, the world’s biggest car parts supplier, also reduced its sales forecast for the year to 440 million euros from 515 million euros.
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