PV Crystalox Solar PLC
PV Crystalox Solar PLC is engaged in the production and supply of multi-crystalline silicon wafers to the worldwide photovoltaic market. The Company has two segments: silicon products, and trading and equipment. The silicon products segment consists of silicon ingots and wafers produced by the Company companies and sold to solar cell manufacturers. The trading and equipment segment is mainly involved in the sourcing of silicon ingots from a supplier to the Company and the onwards supply of these ingots to a customer. In addition, the trading and equipment segment includes a relatively small amount of spare parts manufactured by PV Crystalox Solar PLC. The Company manufactures its multi-crystalline silicon ingots at its facilities in Oxfordshire, United Kingdom, and carries out wafer production for European customers at its facilities in Erfurt, Germany. Wafers for customers in Asia are produced in Japan.
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Silicon wafers maker PV Crystalox hit by first half sales warning
Shares in photovoltaic silicon wafers maker PV Crystalox Solar PLC (LSE: PVCS) were hit in early trade by the company’s warning that sales in the first half are expected to be 10 percent below the figure achieved a year earlier.
In an interim management statement, it said its trading environment continues to be challenging. Although there are early signs of an improvement in the level of PV installations, the tightening of the credit markets has impacted the financing and implementation of major PV projects.
Shares nosedived after the statement was released and were trading down nearly 16 percent in early deals.
Since announcing preliminary results at the end of March, demand from its customers has slowed, PV Crystalox said. High customer inventory levels have led to a number of additional requests for order deferrals which are now expected to reach 30-35MW by the end of first half, with total shipments for the period expected to be in the region of 90-95MW, compared with 110MW a year earlier.
“In view of the challenging market circumstances, we have agreed temporary price flexibility with some of our customers. In parallel we have undertaken discussions with our suppliers and have already achieved some concessions on short term pricing.”
The commissioning of its polysilicon production facility in Bitterfeld is proceeding to schedule and is currently in its final stages.
The group's balance sheet remains robust and its financial position strong with continued positive cash flows increasing the net cash position at the end of the first quarter from the €81.1 million cash balances as at December 31 2008.
“Although timing and visibility for 2009 is uncertain, the group with its strong balance sheet remains well positioned for the upturn in global PV markets,” it said.
