Conergy Drops After Steeper-Than-Expected Loss: Frankfurt Mover
Conergy AG (CGYK), the German solar panel maker owned by creditors since July, fell the most in seven weeks in Frankfurt after posting a steeper-than-expected loss last year on pricing pressure and project delays.
Conergy fell 8 percent to 38 euro cents at the close in Frankfurt, the steepest one-day decline since Dec. 8. The company, based in Hamburg, had a loss before interest, tax, depreciation and amortization of 80 million to 85 million euros, more than the 50 million to 55 million euros it predicted. Conergy also said 2012 sales will probably decline in a preliminary earnings statement last night.
Conergy, once Germany’s largest solar company, is cutting jobs, halting production of wafers and cells, and focusing on end-product modules, project development and services in a bid to become profitable. Bigger-than expected module price declines, restructuring costs and delays in project financing in Greece, Spain and Italy contributed to the loss, it said.
Germany’s solar manufacturers are under pressure from Chinese rivals that have boosted capacity even as international prices slumped. Berlin-based module maker Solon SE (SOO1) and Solar Millennium AG (S2M), with headquarters in Erlangen, filed for protection from creditors last month.
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