Click here to close now.

SYS-CON MEDIA Authors: Trevor Parsons, Jnan Dash, Kevin Jackson, Peter Silva, Greg Wind

News Feed Item

3W Power/AEG Power Solutions Reports Results for Q3 2012

3W Power/AEG Power Solutions:

               
(in € million)       Q3 2012   Q3 20111   Δ in %   Q3 2012   Q2 20121   Δ in %
Order backlog       135.3   200.2   -32.4   135.3   126.8   6.7
Orders       89.2   99.4   -10.2   89.2   83.1   7.4
Revenue       81.0   103.2   -21.6   81.0   93.8   -13.7
Book to Bill       1.10   0.96   14.4   1.10   0.89   23.6
EBITDA       11.0   17.5   -37.0   11.0   5.7   na
EBITDA margin       13.6%   17.0%       13.6%   6.1%    
Normalized EBITDA       13.7   17.4   -21.3   13.7   5.9   na
Normalized EBITDA margin       16,9%   16.8%       16.9%   6.3%    
 
         
(in € million)       9M 2012   9M 20111   Δ in %
Order backlog       135.3   200.2   -32.4
Orders       260.3   307.0   -15.2
Revenue       254.6   282.6   -9.9
Book to Bill       1.02   1.09   -5.9
EBITDA       16.0   41.4   -61.4
EBITDA margin       6.3%   14.6%    
Normalized EBITDA       19.6   40.2   -51.3
Normalized EBITDA margin       7.7%   14.2%    
 

1 historical numbers have been represented for comparative purposes to reflect the classification of the telecom converter business (CVT/LED) as a discontinued operation in Q3 2012.

3W Power SA (Prime Standard, ISIN GG00B39QCR01, 3W9), the holding company of AEG Power Solutions (AEG PS), a global leading provider of power electronic systems and solutions for industrial power supplies and renewable energies, today announced results for Q3 2012.

Order intake in Q3 2012 was €89.2 million, down 10.2% year-on-year as a result of a significant drop in orders for polysilicon systems for POC in RES. Compared to the prior quarter, orders were up 7.4% primarily coming from Solar which is resuming solid growth after renewed ability of some key customers to obtain project financing. Order backlog in Q3 2012 was €135.3 million, down 32.4% year-on-year but up 6.7% compared to Q2 2012. The book-to-bill ratio of 1.10 in Q3 2012 provides a solid underpinning despite the persistent weaknesses in the macroeconomic environment.

Revenue in Q3 2012 was €81.0 million, down 21.6% compared to Q3 2011 (€103.2 million) and down 13.7% compared to the prior quarter (€93.8 million) with increases in Solar revenue (up 13.3%) offset by lower POC and EES revenue. Normalized EBITDA in Q3 2012 was €13.7 million, which excludes one-time charges of €2.7 million. This corresponds to normalized EBITDA in Q3 2011 of €17.4 million and €5.9 million in Q2 2012. The Group maintained solid liquidity in Q3 and had €65.3 million cash on balance sheet at the end of September 2012.

On November 5, AEG PS completed the sale of EMED, a 5.75MW solar installation in Puglia, Italy for a total consideration of €24.3 million, which includes the assumption of €17.4 million of debt. In Q3 2012, EMED contributed €0.8 million in operating income to the Group.

RES Business Segment

               
(in € million)       Q3 2012   Q3 20111   Δ in %   Q3 2012   Q2 20121   Δ in %
Order backlog       54.5   119.0   -54.3   54.5   54.2   0.5
Orders       42.1   55.8   -24.5   42.1   37.2   13.3
Revenue       42.3   62.1   -31.8   42.3   51.7   -18.2
EBITDA       11.8   20.0   -40.8   11.8   10.3   15.1
EBITDA margin       27.9%   32.2%       27.9%   19.9%    
 

1 historical numbers have been represented for comparative purposes to reflect the classification of the telecom converter business (CVT/LED) as a discontinued operation in Q3 2012.

Orders in Renewable Energy Solutions (RES) were €42.1 million in Q3 2012, down 24.5% from €55.8 million year-on-year, resulting from lower POC business partially offset by strong order intake from Solar (up 129.4% year-on-year). Compared to Q3, orders were up 13.3% from €37.2 million largely driven by Solar (up 24.5%). RES order backlog in Q3 2012 was €54.5 million, down 54.3% year-on-year but up 0.5% compared to Q2 2012.

RES revenue was down 31.8% to €42.3 million in Q3 2012 compared to €62.1 million in Q3 2011 with increases in Solar revenue not sufficient to offset the weakness in POC. Compared to Q2 2012, RES revenue was down 18.2% with increases in Solar (up 13.3%) offset by a drop in POC. Segment EBITDA for RES was €11.8 million in Q3 2012 compared to €20.0 million in Q3 2011, again a reflection of the drop in highly profitable POC revenues.

In Q3 2012, the Company recorded an accelerated amortization charge for customer-related intangible assets of €43.3 million driven by the current significant overcapacity in the POC market and corresponding investment reluctance of the Company’s customers. The spot market for polysilicon continues to indicate an oversupply situation. “While we strongly believe that the polysilicon market will recover in the medium-term, it remains a strategic priority for us to continue diversifying the Power Controller business beyond polysilicon applications into promising areas”, comments Horst J. Kayser, CEO of 3W Power/AEG Power Solutions.

EES Business Segment

               
(in € million)       Q3 2012   Q3 20111   Δ in %   Q3 2012   Q2 20121   Δ in %
Order backlog       80.8   81.1   -0.4   80.8   72.6   11.3
Orders       47.1   43.6   8.0   47.1   45.9   2.6
Revenue       38.7   41.1   -5.8   38.7   42.1   -8.0
EBITDA       2.5   2.0   25.0   2.5   0.1   n/a
EBITDA margin       6.5%   4.9%       6.5%   0.3%    
 

1 historical numbers have been represented for comparative purposes to reflect the classification of the telecom converter business (CVT/LED) as a discontinued operation in Q3 2012.

In Energy Efficiency Solutions (EES), order intake for Q3 2012 was €47.1 million, up 8.0% year-on-year (Q3 2011: €43.6 million) due to higher EMS order intake. Compared to the prior quarter, EES showed moderate growth, up 2.6% mainly due to lower DCT orders. The order backlog stood at €80.8 million in Q3 2012, down 0.4% compared to the prior year but up 11.3% compared to €72.6 million in Q2 2012.

Revenue was €38.7 million in Q3 2012, down 5.8% compared to the prior year (Q3 2011: €41.1 million) and down 8.0% compared to €42.1 million in Q2 2012. Segment EBITDA for EES in Q3 2012 was €2.5 million, including restructuring charges of €1.3 million, compared to €2.0 million in Q3 2011 and €0.1 million in Q2 2012.

In Q3 2012, the Company has classified its loss-generating telecom converter business in Lannion, France within EES as a discontinued operation and asset held for sale. For the three and nine-months ending September 2012, the Company’s loss from discontinued operations was €4.9 million and €8.2 million, respectively.

Outlook

For the full financial year 2012, 3W Power expects revenue of €370-€380 million and projects a normalized EBITDA margin of at least 9% which excludes the discontinued operations of the telecom converter business (CVT/LED). This EBITDA expectation has an additional upside of up to €7 million due to contractual cancellation fees that may be recognized in Q4 2012. The expectation is based on continued margin improvements in the EES business segment and an order and sales pipeline above 2011 levels in Solar within RES for the fourth quarter of 2012.

While AEG PS is well diversified and excellently positioned both technologically and also geographically to capture opportunities in its key global industrial vertical markets as well as in the renewable energy markets, the Company expects 2013 will be a challenging year given the continued global macroeconomic issues and the overcapacity in the polysilicon industry. As such, AEG PS has initiated a multi-faceted cost improvement initiative to continue to increase structural profitability. The Company has launched a global EES headcount reduction of more than 100 employees, principally in Warstein-Belecke, Germany. This initiative, together with the effects of product clinics, purchasing initiatives to reduce material costs and structural efficiency programs undertaken in 2012, is expected to achieve run-rate cost savings of approximately €7 million. In addition, AEG PS has further focused on reducing its central overhead costs and is targeting an annual run-rate of its central overhead costs of approximately €10 million. Restructuring provisions and one-off costs for all of these initiatives are expected to be approximately €9.7 million. The Company took a restructuring charge of €2.4 million in Q3 2012 and expects to take a charge for the balance of these initiatives in Q4 2012.

The diversity of the Company’s business mix and its exposure to the solar market makes accurate forecasting in the current economic environment difficult. For 2013 AEG PS expects to achieve overall sales volumes above 2012 levels and with its cost reduction initiatives and stressed emphasis on continuous improvement the Company expects to maintain similar EBITDA profitability levels to those of 2012. On a segment level for 2013, AEG PS currently anticipates the following:

  • Solar orders and revenue to grow profitably year-on-year,
  • POC orders and revenue to fall short of 2012 levels on continued weakness in the polysilicon market; POC will remain profitable even at substantially lower volumes; and,
  • EES, excluding the telecom converter business (CVT/LED), to achieve modest year-over-year revenue growth but with a step-change in profitability given the significant cost improvement initiatives.

Horst J. Kayser emphasizes that ”AEG PS is fortunate to have such a diversified business both geographically as well as across industries and markets. With a focus on both cash flow and exciting new growth areas we are well positioned for the future.” AEG PS’ industrial business continues to provide a solid and resilient base that helps to insulate the Company from the more volatile and cyclical business segments within RES. AEG PS continues to focus on improving the profitability and cash generation of EES whilst supporting the growth and development of Solar. The Company’s Solar business is well positioned and less exposed to the challenging Western European markets relative to key competitors. The recent certification of the Protect PV.500-UL to the North American standard now also positions the Company in the U.S. solar market. Furthermore, the only local producer of utility scale solar inverters in South Africa, AEG PS is uniquely positioned in growth regions of Southern Africa as well as in Eastern Europe and India. Lastly, despite near-term market volatility, the POC business remains profitable and will continue to be a center of innovation and technological strength as the Company diversifies into new promising areas such as advanced industrial applications and power control systems for energy storage and Smart Grid applications.

-- End of Announcement –

Characters: c. 10,100

About 3W Power/AEG Power Solutions:

3W Power S.A. (WKN A0Q5SX / ISIN GG00B39QCR01), based in Luxembourg, is the holding company of AEG Power Solutions Group. The Group is headquartered in Zwanenburg in the Netherlands. The shares of 3W Power are admitted to trading on Frankfurt Stock Exchange (ticker symbol: 3W9).

AEG Power Solutions (AEG PS) Group is a global provider of power electronics systems and solutions for all industrial power requirements offering one of the most comprehensive product and service portfolios in the area of power conversion and power control. Two complementary operating business segments, Renewable Energy Solutions (RES) and Energy Efficiency Solutions (EES) serve customers worldwide. The RES product and service portfolio consists of systems and solutions for solar power plants, such as solar inverters, monitoring and control systems as well as power controllers for a wide range of industrial applications such as polysilicon, energy storage, sapphire, and glass. The EES product and service portfolio includes high-performance uninterruptable power supplies (UPSs), industrial chargers, DC systems and converters.

Thanks to its distinctive expertise, bridging both AC and DC power technologies and spanning the worlds of both conventional and renewable energy, the company creates innovative solutions for smart grids.

AEG PS’ footprint is global including 17 subsidiaries and competence centers around the world, employing 1,700 employees.

For more information go to: www.aegps.com

This communication does not constitute an offer or the solicitation of an offer to buy, sell or exchange any securities of 3W Power. This communication contains forward-looking statements which include, inter alia, statements expressing our expectations, intentions, projections, estimates, and assumptions. These forward-looking statements are based on the reasonable evaluation and opinion of the management but are subject to risks and uncertainties which are beyond the control of 3W Power and, as a general rule, difficult to predict. The management and the company cannot and do not, under any circumstances, guarantee future results or performance of 3W Power and the actual results of 3W Power may materially differ from the information expressed or implied in the forward-looking statements. As a result, investors are cautioned against relying on the forward-looking statements contained herein as a basis for their investment decisions regarding 3W Power.

3W Power undertakes no obligation to update or revise any forward-looking statement contained herein.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Soha will exhibit at SYS-CON's DevOps Summit New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Soha delivers enterprise-grade application security, on any device, as agile as the cloud. This turnkey, cloud-based service enables customers to solve secure application access and delivery challenges that traditional or virtualized network solutions cannot solve because they are too expensive, inflexible and operational...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
SYS-CON Events announced today that Tufin, the market-leading provider of Security Policy Orchestration Solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. As the market leader of Security Policy Orchestration, Tufin automates and accelerates network configuration changes while maintaining security and compliance. Tufin's award-winning Orchestration Suite™ gives IT organizations the power and a...
SYS-CON Events announced today that Optimal Design, an Internet of Things solution provider, will exhibit at SYS-CON's Internet of @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Optimal Design is an award winning product development firm offering industrial design and engineering services to the consumer, medical, and defense markets.
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
SOASTA, the leader in performance analytics, today reported record growth of the CloudTest community, exceeding 30,000 registered users of the CloudTest platform in Q1 2015. SOASTA also announced widespread adoption of its Web and mobile testing solutions, with more than 1,600 customers completing more than 285,000 tests using CloudTest during the quarter. This rapid growth shows that DevOps-driven digital businesses are embracing a more continuous approach to testing, and CloudTest is meeting t...
ProfitBricks has launched its new DevOps Central and REST API, along with support for three multi-cloud libraries and a Python SDK. This, combined with its already existing SOAP API and its new RESTful API, moves ProfitBricks into a position to better serve the DevOps community and provide the ability to automate cloud infrastructure in a multi-cloud world. Following this momentum, ProfitBricks has also introduced several libraries that enable developers to use their favorite language to code ...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables c...
SYS-CON Events announced today that Stratoscale, the new data center operating system, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Based in Herzeliya, Israel, Stratoscale is redefining the data center, developing a hardware-agnostic, software platform hyper-converging compute, storage and networking across the rack or data center. The self-optimizing platform automatically distributes all physical...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Softw...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to off...
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business applic...