November 13, 2008

Sulzemoos, Germany: Phoenix Solar AG Announces Third Quarter 2008 Results

German system integrator, Phoenix Solar AG has reported more than double total revenues for its domestic and international business for the period from 1 July to 30 September 2008.

Revenues rose from EUR 73.2 million in the third quarter of 2007 to EUR 149.3 million in the third quarter of 2008 (up 104 percent). This sharp increase was attributable to the Power Plant segment which, with its strong international business, achieved total revenues of EUR 80.9 million (Q3/2007: EUR 43.9 million) and the Components & Systems segment which contributed EUR 68.4 million (Q3/2007: EUR 29.3 million).

In the third quarter, 53 percent of revenues were generated by international business.

Earnings before interest and taxes (EBIT) soared by 85 percent to EUR 17.6 million in the third quarter of 2008, up from EUR 9.5 million in the previous year’s quarter. The EBIT margin (the ratio of EBIT to sales) of 11.8 percent also reached a very high level (Q3/2007: 13.0 percent). Net income for the period more than doubled to EUR 13.8 million, up from EUR 5.9 million in the year-earlier quarter (up 134 percent).

In the period from January to September 2008, the Group’s total revenues rose by 128 percent to EUR 301.1 million as against the previous year’s figure (Q1-Q3/2007: EUR 132.0 million). Of this amount 52 percent, the equivalent of EUR 155.5 million, was generated by business abroad (Q1-Q3/2007: 27 percent). Compared with the previous year’s period, international business thus grew by 330 percent.

At the end of nine months, the Components & Systems segment achieved an increase of 108 percent in revenues, which advanced to EUR 137.2 million (Q1-Q3/2007: EUR 66.0 million). Revenue growth posted by the Power Plants segment came to 148 percent (Q1-Q3/2008: EUR 163.9 million; Q1-Q3/2007: EUR 66.0 million).

At the end of the nine-month period, EBIT leapt 223 percent to EUR 29.1 million (Q1-Q3/2007: EUR 9.0 million), thus already exceeding guidance to date. The EBIT margin in the first nine months is therefore at a high level of 9.7 percent Q1-Q3/2007: 6.8 percent).

In the reporting period, consolidated profit after tax quadrupled to EUR 21.9 million, up from EUR 5.4 million, in a year-on-year comparison.

Earnings per share (EPS) calculated on this basis posted EUR 3.27 (Q1-Q3/2007: EUR 0.89). The equity ratio climbed from 33.2 percent to 52.1 percent as per the reporting date.

As compared with the previous year’s figure, orders on hand rose from EUR 134 million to EUR 275 million as per 30 September 2008. Of this amount, EUR 199 million was contributed by the Power Plants segment and EUR 76 million by the Components & Systems segment. Adjusted for work in progress, orders on hand came to EUR 132 million. Contracts worth EUR 34 million have already been signed with the Power Plants segment for 2009.

Against the background of the very successful business performance, demand in both segments and a healthy order book, the Board of Directors has again revised its guidance for the financial year 2008 upwards, despite the difficulty of predicting the development in the financial markets. With total revenues now budgeted at EUR 380 million, an EBIT of around EUR 33 million is anticipated.

Further details about: Phoenix Solar