Centrotherm 2015 Results

German PV production equipment maker Centrotherm Photovoltaics AG strongly improved its profit around 6X to €7 million, but missed even the lower end of its revenue guidance for 2015 (€150 to €200 million), when it posted €139 million in sales. The management blamed a 'lack of new business in the silicon segment' along with 'delay to its large-scale polysilicon factory project in Qatar'.

While the company's photovoltaics and semiconductor segment provided 60% of its total revenue for the year (increasing from 50% in 2014), over 30% came from the silicon segment and more than 10% from its thin film and customized equipment segment.

EBIT down due to restructuring, but earnings up
Centrotherm's operating profit before interest and taxes (EBIT) reduced by over 3% to €19 million from €19.6 million a year before, delivering an EBIT margin of 13.7%, as compared to 10.3% the year before, owing to cost-reduction measures it undertook. But its consolidated profit improved by nearly 6X to €7 million in 2015 from €1.2 million in 2014. "The company has thereby achieved its second consecutive positive consolidated result after its 2012/2013 restructuring," Centrotherm emphasized.

Most orders from PV segment
Out of the total €91 million of new orders it booked in 2015, €69 million was for the photovoltaics and semiconductor segment; the remaining €22 million came from in from the thin film and customized equipment segment.

Orders quickly growing
Centrotherm has an order book of €146 million as of March 31, 2016 which means a 28% increase from €114 million end of December 31, 2015. In the first quarter of 2016, it has booked €49 million worth of orders in its core operating segment which is the photovoltaics and semiconductor segment. This, it attributes, to solar cell manufacturers making significant investments in expanding their 'existing and new' production capacities.

2016 revenues guidance lower than for 2015 but profitable
While Centrotherm 'assumes accelerating business trends' in all its segments, it guided for silicon revenue to be 'significantly below 2015 revenue' owing to the same reasons as for the 2015 performance, namely 'due to a lack of new business to date and a delay to a large-scale project.' That's why group targets its revenue to be in the range of €120 to €150 million, which is below its 2015 goal of €150 to €200 million.

Still, Centrotherm is upbeat on its profits, although providing no specific number. "The Management Board also anticipates at least breakeven at the consolidated net result level," Centrotherm says, adding, "The company continues to aim to achieve the latter through consistent efficiency enhancement and cost structure optimization."

Managment changes
Announcing a major change in its management board, Centrotherm has replaced its COO Boris Klebensberger only after few months with Jan von Schuckmann. After 2 years with wet etching specialist RENA, Schuckman returns to Centrotherm, where he worked following the company's insolvency as Chief Restructuring Officer and Management Board Spokesman. Klebensberger, a former long-term COO of SolarWorld, left Centrotherm end of February 29, 2016 "due to differing ideas about the company's future strategic orientation."