3W Power/AEG Power Solutions Reports Strong Performance in Q3/2011
3W Power S.A., the holding company of AEG Power Solutions (AEG PS), announced its financial results for the third quarter ended September 30, 2011. The Group revenue for the quarter was 56.0% higher than in the same period in 2010, reaching €109.2 million (2010:€70.0 million). The revenue growth for the quarter was generated by both company business segments: revenue at Renewable Energy Solutions (RES) increased to €62.1 million (2010:€29.4 million) while revenue at Energy Efficiency Solutions (EES) rose to €47.1 million (2010:€40.6 million).
"We are very pleased with our performance during the third quarter 2011. Based on our global go-to market strategy for renewable energy solutions and our technical leadership in power controllers, we successfully continued to drive growth, despite market weaknesses in certain Western European countries", commented Horst J. Kayser, CEO of AEG Power Solutions. "With our combination of competence in industrial power electronics and experience in the renewable space, we contribute to a sustained, secure and efficient energy supply for the future."
Incoming orders in the third quarter of 2011 were €102.9 million, up 14.7% on the third quarter of 2010. Adjusted EBIT in Q3 was €15.2 million (13.9% of revenue) compared to €1.4 million (2.0% of revenue) in the same period in 2010.
Q3 order growth was particularly strong in the Renewable Energy Solutions (RES) segment as orders for the quarter were €55.8 million, up 66.1% on the third quarter of 2010. The growth is driven by demand within the solar value chain, from the upstream manufacturing of polysilicon (power controllers) to the downstream installation of solar power generation plants (solar inverter solutions). EBITDA for RES rose to €19.9 million (2010:€7.6 million) and was 32.0% of revenue (2010:25.9%).
RES continued to invest in its key product lines demonstrating commitment to innovation and confidence in the long-term fundamentals of the renewable space. In September 2011, AEG PS announced a new frame agreement with GT Advanced Technologies for the supply of Thyrobox M™-systems. These systems offer significant advantages to polysilicon manufacturers in terms of higher energy density and efficiency, lower footprint and advanced process monitoring capability.
In October 2011, a new 400MW solar inverter facility was officially opened in India, offering opportunities to strengthen customer relationships and improve competitiveness in the expanding renewable market in this region. In the last nine months in India, AEG PS has been awarded 39MW of total solution solar projects while monitoring systems from skytron have been ordered for installation on 45MW of solar capacity.
Also in Q3, AEG PS acquired the outstanding 25% of skytron, after buying a majority stake last year.
In the Energy Efficiency Solutions segment (EES) orders in Q3 were €47.1 million, 16% lower than in the same period in 2010 as order growth in the industrial UPS product line was offset by softer demand in the telecom systems and converter product lines. Orders in the last nine months were €160.3 million, 2% higher than in the same period in 2010 (EUR157.1 million).
In the third quarter EES recorded positive EBITDA of €1.7 million, reversing negative EBITDA of €1.4 million in the third quarter 2010. Cost reduction and standardization programs as part of Agenda 2012 are in place and are yielding benefits which are expected to accelerate in Q4 and beyond.