3W Power Holdings (Amsterdam:3WP), the holding company of AEG Power Solutions, a global player in premium power electronics, today announced its financial results for the third quarter ended September 30, 2020. Orders for the quarter were €89.7 million, 93% higher than the third quarter of 2009 and 5.9% higher than the second quarter of 2010. Sales in the quarter were €70.1 million, down 11% over the same period in 2009 and down 8.3% on the second quarter of 2010. Q3 is typically a weak quarter cyclically for AEG PS, a reflection of traditionally slower trading in Europe in August. In addition, polysilicon sales in the Renewable Energy Solutions (RES) segment remain subdued.
The strongest contributor to growth was solar with orders worth €25.3 million vs. €19.2 million in the second quarter of 2010. Three consecutive quarters of increased orders for the Group alongside a strong demand for solar indicate a sustained turnaround moving forward. The book to bill ratio improved from 59% in the third quarter of 2009 to 128%.
Third quarter EBITDA improved and was a positive €0.75 million (2009 pro-forma €12.82 million) compared to negative EBITDA of -€4.31 million in the second quarter 2010. For the nine months to September 2010, EBITDA was €0.49 million, (2009 nine month pro-forma €73.3 million) against -€0.26 million for the half year. Operating cash flow in the quarter was positive €5.0 million. Order backlog at the end of September 2010 stood at €140.6 million (2009 €147.4 million).
Recent Developments and Outlook
As announced in the half-year report 2010, the strategic initiative “Agenda 2012” is starting to be implemented within the company. “Agenda 2012” is a multi pronged approach to drive top line growth and establish sustained profitability with the goal to achieve €500m of revenues and 15% EBITDA margins by 2012. “I am confident that this program will drive operational improvement and set us on the right track to become a leader for innovative power management solutions to customers in the green energy revolution,” commented Dr Horst J. Kayser, CEO, who launched the initiative in August.
As part of this process, AEG PS continues to strengthen its management team with the appointment of Jan Sickmann to the role of Chief Operating Officer (COO).
The Company reiterates its intention to list the shares of 3W Power Holdings S.A. on the Prime Standard of the Frankfurt Stock Exchange as soon as is practical and in coordination with other potential capital markets activities to occur within the next quarter.
Business Segments Update
AEG PS underlined its technological leadership position in power controllers with the launch of ThyroboxTM PI – marking a technological breakthrough for polysilicon production efficiency – at the “25th European Photovoltaic Solar Energy Conference and Exhibition” in Valencia. In addition, the ThyroboxTM AF extends AEG PS’ premium Power Controller range to additional arc furnace applications and enjoyed a successful market reception. The Company’s advanced product offerings will ensure AEG PS maintains its leading technology position in the market for power control systems.
The RES segment secured substantial new business in third quarter with a frame agreement for 260 MW of photovoltaic power plant equipment in Eastern Europe as well as a frame agreement signed in India to develop a minimum of 100 MW solar capacities. This indicates the success of the PV250 inverters as one of the best technologies in the marketplace. These new partnerships prove the success of the global solution approach combining skytron monitoring solutions with AEG PS systems offering a complete package to the solar marketplace. The partnerships announced in the third quarter further solidify AEG PS’ excellent global growth perspectives.
Additionally, a key part of Agenda 2012 is a project to enhance operational efficiency within Energy Efficiency Solutions (EES). The company is identifying multi-million euro cost saving opportunities from footprint optimization, restructuring measures, outsourcing and product cost improvements from design and purchasing arrangements. Most of the measures will be effective to the bottom line in 2011 and full effect will be achieved in 2012.
Source: Business Wire
