SolarWorld sees massive 2012 loss, calls EGM

30 Apr, 2013

SolarWorld said plunging solar module prices and asset writedowns likely caused a 2012 net loss of more than half a billion euros, as the debt-laden group continued to feel the impact of weak demand, industry overcapacity and falling government subsidies.
The German-based maker of solar panels pegged the loss at 520 million to 550 million euros ($670 million-$720 million), but an ongoing audit of its books might "significantly modify" this estimate, it said on Wednesday in a statement to the Frankfurt stock exchange.
SolarWorld, like its peers, is suffering from overcapacity of cells and modules, falling government subsidies for solar power, and cheaper rivals, causing it to warn bondholders in January it needed to restructure its debt. Talks with creditors to reorganise its liabilities, which stood at 1.03 billion euros at the end of September, were constructive, it said in March.
"Today's statement has no impact on our restructuring process and the operating business of SolarWorld," Chief Executive Frank Asbeck told Reuters in emailed statements, adding that the company was still in constructive talks with creditors. SolarWorld's struggles follow debt restructurings at former German solar heavyweights Conergy and Q-Cells. The latter filed for insolvency last year.
SolarWorld, once Germany's biggest solar group, said 80 percent of the estimated 2012 loss is due to "adjusted valuations" for shares in affiliated businesses and subsidiaries and loans, with the rest from "business developments" in 2012. The estimated loss amounted to half of SolarWorld's nominal share capital and its equity capital was negative at about 20 million to 50 million euros, it said. It plans to convene an extraordinary meeting of shareholders, SolarWorld said, without giving a date.

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