Centrosolar Rises After Revenue Gains 71%, Forecast for Continued Growth
Centrosolar Group AG, a German supplier of photovoltaic systems for roofs, rose 6.1 percent after it said revenue surged 71 percent in the first half of the year and expects growth to continue next year.
The Munich-based company reported revenue of 209 million euros ($276.3 million) in the six months through June, driven by installations in Germany, compared with 122 million euros in the same period a year ago. Net income increased to 13 million euros compared with a loss of 37.1 million euro.
Centrosolar said it could not fully meet demand from Germany and other European markets, particularly France and Italy. It has increased its solar module production capacity to 155 megawatts from 11 megawatts.
The shares rose as much as 8 percent to 5.477 euros from 5.07 euros yesterday on the Xetra market. They closed up at 5.38 euros.
In a statement, the company said it expects an easing in demand in the photovoltaic market during the third quarter, especially in Germany. It said current bottlenecks in solar cell and inverter procurement were expected to ease towards the end of the year, leading to surplus capacity and a “price war” amid solar cell manufacturers next year.
Despite also forecasting solar panel oversupply in 2011, Centrosolar said it expects further revenue growth and “attractive” margins, underpinned by its specialization in roof-top systems and solar glass.
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