SFC Energy AG: Increased order intake confirms attractiveness of SFC power solutions
SFC Energy AG / Key word(s): Quarter Results
Increased order intake confirms attractiveness of SFC power solutions
- EUR 3,721k total sales in Q1 2011, an increase of 3.5%
- Significant Sales growth of 94.8% in the defense segment
- Order intake increased by 15.7% in Q1 2011 (up to EUR 2,795k)
Brunnthal/Munich, Germany, April 28, 2011 - SFC Energy AG, technology and market leader in mobile and remote power solutions based on fuel cells, has achieved total sales of EUR 3,721k in the first three months of 2011. This is an increase of 3.5% over the same period in the previous year (Q1/10: EUR 3,595k).
Gross profit in the first quarter of 2011 was EUR 1,073k which was the same as last year (also EUR 1,073k). Gross margin declined slightly to 28.8% (Q1/10: 29.8%). The gross profit was impacted by lower unit sales in the leisure market, where there was a planned reduction of stock levels at dealers and an increase in overhead costs. The Company's EBIT in the first quarter of 2011 declined to a loss of EUR 1,280k from a loss of EUR 833k in Q1/10, the after tax result fell to a loss of EUR 1,175k (Q1/10: minus EUR 735k) due to higher operating costs. In particular there was an increase in production costs which followed the opening of the new production facility in Q2/10.
The increasing demand for SFC products was reflected by incoming orders in the first quarter of 2011: at EUR 2,795k these were 15.7% higher than in Q1/10 (EUR 2,416k) - despite the intentional reduction in the stock levels at dealers in the leisure market. The order backlog at March 31, 2011, was EUR 2,225k (March 31, 2010: EUR 2,233k).
Cash and cash equivalents (freely available) at March 31, 2011, came to EUR 31,018k (December 31, 2010: EUR 33,560k). A major factor in the net cash outflow was a change in the way the Company purchases its platinum. Instead of purchasing precious metal in small quantities at the price ruling at the time an order for components is despatched, it chose to make a single purchase of sufficient supplies to last well into 2012. This was done at prices which compare attractively to current market prices. This eliminates the price risk of the metal as well as the currency exchange risk caused by the metals being traded in USD.
As of March 31, 2011, SFC Energy AG had 95 permanent employees (March 31, 2010: 96 permanent employees).
In the reporting period, SFC again achieved significant sales increases in the defense segment (up by 94.8%). This was due to both an increase in product sales and the revenue generated by new joint development agreements which were secured in the second half of 2010. This development confirms the high attractiveness of SFC's off grid power solutions for portable and mobile defense applications. In the industry markets, too, higher sales were achieved than in the first quarter of 2010 (up by 5.4%). As previously announced, the reduction in stock levels at the dealers in the leisure market, continued to negatively influence sales in this segment (down by 12.1% compared to Q1/10).
Whilst, the de-stocking in the leisure sector caused, the number of A-series fuel cell systems sold to decline by a total of 21.9%, from 1,363 to 1,064 units, the A-series sales revenue decrease was only 14.2%. This was mainly due to a shift in the product mix towards more powerful fuel cell systems and also an increase in sales in the industry markets and reduced dealer rebates in the leisure sector.
For 2011 the Management Board expects organic sales growth to be similar to that achieved in 2010, with the defense and industry markets providing most of the improvement. In the leisure market it expects to see stable sales with some growth provided by the Canadian market launch. Growth in the industry and defense markets will be generated by strategic partnerships as well as further focus on integrated energy solutions. This may also include acquisitions. According to current planning, sales growth combined with further product cost reduction will lead to significant improvements in EBIT and cash flow, allowing us to take concrete steps towards break-even.
On April 1, 2011, the Supervisory Board extended the contract of the CEO of SFC Energy AG, Dr. Peter Podesser, by another three years. This ensures the continuity required for the sustainable reorientation of SFC towards becoming a supplier of complete off-grid power solutions.
The three months 2011 report of SFC Energy AG is available for download at www.sfc.com.
About SFC Energy AG
SFC Energy AG (www.sfc.com) is market leader in fuel cell technologies for mobile and off-grid power applications serving the leisure, industrial and defense markets. As one of Germany's technology pioneers, SFC has won numerous innovation awards. SFC has alliances with leading companies in a wide range of industries. Unlike most other fuel cell manufacturers, who are in the research and development phase or run subsidized demonstration projects, SFC has successfully shipped more than 21,000 fully commercial products to industrial and private end users for more than five years, and has created a convenient fuel cartridge supply infrastructure. SFC is DIN ISO 9001:2000 certified. SFC is based in Brunnthal, Germany, and has a U.S. sales and technical service office in the U.S. SFC Energy AG is listed at the Deutsche Boerse Prime Standard (WKN 756857).
SFC Investor Relations:
Barbara von Frankenberg
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|Company:||SFC Energy AG|
|Phone:||+49 (89) 673 592 - 100|
|Fax:||+49 (89) 673 592 - 169|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart|
|End of News||DGAP News-Service|