SFC Energy AG: Good performance, especially in the second quarter 2011


SFC Energy AG / Key word(s): Half Year Results

26.07.2011 / 08:00


- Order intake of EUR 6,201k in 6M/11 represents an increase of 42.3% over 6M/10

- Total sales of EUR 7,776k in 6M/11, giving growth of 18.2%

- Increased sales (up by 35.9%) and improved gross profit (up by 51.3%) in the second quarter confirm the strategic approach to system based solutions

Brunnthal/Munich, Germany, July 26, 2011 - SFC Energy AG, technology and market leader in mobile and remote power solutions based on fuel cells, has increased sales by 18.2% to EUR 7,776 k in the first six months of 2011 (6M/10: EUR 6,579 k). Sales in the second quarter 2011 of EUR 4,055k were 35.9% over the same period in the previous year (Q2/10: EUR 2,984k).

Key Data

TEUR Q2/11 Q2/10 qoq 6M/11 6M/10 yoy
Sales 4,055 2,984 +35.9% 7,776 6,579 +18.2%
Gross profit 1,366 903 +51.3% 2,438 1,976 +23.4%
Gross margin 33.7% 30.3% n.a. 31.4% 30.0% n.a.
EBIT -923 -1,273 n.a. -2,203 -2,106 n.a.
EAT -838 -1,170 n.a. -2,013 -1,905 n.a.

 

Gross profit in the first half year of 2011 increased by 23.4% to EUR 2,438k (6M/10: EUR 1,976k) (Q2/11: EUR 1,366k, Q2/10: EUR 903k, plus 51.3%), mainly due to the shift in the model mix towards higher margin products and increased sales in the defense and industry segments. As a consequence, gross margin increased to 31.4% (6M/10: 30.0%) (Q2/11: 33.7%, Q2/10: 30.3%).

The Company's EBIT in the first half year of 2011 with minus EUR 2,203k was slightly below the previous year (6M/10: minus EUR 2,106k); in the second quarter of 2011, however, the EBIT of minus EUR 923k was better than in the second quarter of 2010 (minus EUR 1,273k). The after tax result in the first six months of 2011 fell to minus EUR 2,013k (6M/10: minus EUR 1,905k), but increased in the second quarter from minus EUR 1,170k in Q2/10 to minus EUR 838k.

In the first half of 2011 market demand for SFC products continued to grow. Incoming orders in the first six months of 2011 were EUR 6,201k which was 42.3% up on the previous year (6M/10: EUR 4,357k) - despite the deliberate reduction of stock levels at dealers in the leisure market. In the second quarter incoming orders increased significantly by 75.5% to EUR 3,406k (Q2/10: EUR 1,941k). The order backlog at June 30, 2011, was EUR 1,575k (June 30, 2010: EUR 1,191k).

Cash and cash equivalents (freely available) at June 30, 2011, came to EUR 28,379k (June 30, 2010: EUR 36,416k). The increased net cash flow used in operating activities was mainly a result of a change in purchasing and hedging policies with regard to platinum and ruthenium. Instead of purchasing precious metals on a spot basis, with a forward contract providing a hedge, SFC has now taken the decision to acquire a strategic inventory which it will use in production for approx. two years. In addition, administration bottlenecks at the responsible authorities also delayed payment of grant funded projects.

As of June 30, 2011, SFC Energy AG had 100 permanent employees (June 30, 2010: 98 permanent employees).

Markets

In the reporting period, SFC achieved significant sales increases in the industry segment (up by 47.1%), as well as in the defense segment (up by 174.9%). In the industry segment the partnership with Ensol, Canada, for EFOY Pro fuel cells to be supplied to the oil and gas industry, is of special significance. Beyond that, SFC fuel cells are now also used in flood watch systems in Singapore. Sales growth in the defense segment resulted from higher product sales as well as increased turnover from joint development agreements. These figures confirm the continuing attractiveness of SFC's mature products as well as the Company's innovative strength in creating complete off grid power solutions tailored to meet the requirements of soldiers in the field. As already reported in the previous quarter, the reduction of stock levels at dealers in the leisure market, initiated by SFC, continued to negatively influence sales in this segment (down by 17.3% compared to 6M/10) but it has also contributed to an improvement in margins. The introduction of the new EFOY COMFORT fuel cell series in May has been welcomed positively in the market and is expected to contribute to further sales growth in the coming quarters. The first deliveries in June have also shown further improvement in margins for the SFC volume product.

Whilst, due to the stock level reduction in the leisure segment, the number of A-series fuel cell systems declined once more by 22.0% to 1,840 units (6M/10: 2,359 units), the A-series sales decrease was only 3.9%.This was mainly due to a shift in the model mix towards the more powerful fuel cell systems, increased sales in the industry markets and reduced rebates in the leisure market.

Outlook

The outlook for 2011 has improved since the announcement of the First Quarter results and management now expects organic sales growth to be at least as good as that achieved in 2010.The defense and industry markets are expected to provide most of the improvement. In the leisure market management, as before, expects to see a stable sales development with growth coming from the launch of the new EFOY COMFORT product series and the Canadian market launch. The growth in the industry and defense markets will be generated through further strategic industrial partnerships as well as a continued focus on integrated energy solutions. This may also include selective, bolt-on acquisitions. Based on today's plans, sales growth combined with further action to reduce product costs will be the basis for significant improvements in EBIT and cash flow resulting into concrete steps towards break even.

Organization

On June 22, 2011, the Supervisory Board appointed Gerhard Inninger (47) as the Company's new CFO, and thus completed the Company's Management Board as planned. Together with the CEO, Dr. Peter Podesser, and starting in the middle of August, Mr. Inninger will ensure the implementation of SFC's growth strategy, and the continuing improvement of all cost structures.

Detailed Financials

The half year 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 22,000 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
Head of IR and PR
SFC Energy AG
Eugen-Sänger-Ring 7
D-85649 Brunnthal
Tel. +49 89 673 592-378 Fax. +49 89 673 592-169
Email: [email protected]



End of Corporate News


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133120  26.07.2011

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