SFC Energy AG: Another increase in sales and gross margin over prior-year period

SFC Energy AG / Half Year Results

27.07.2010 08:01

Dissemination of a Corporate News, transmitted by
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SFC Energy AG (previously: SFC Smart Fuel Cell AG) - Corporate News Half-Year Results 2010

SFC - Another increase in sales and gross margin over prior-year period
- 6M/10 sales up 16.1% from 6M/09 at EUR6,579k (EUR5,666k)
- Gross margin advances to 30.0% in first half of 2010 versus 23.8% the     year before

- Milestone with potential: First serial production order from the German     Bundeswehr

- Cooperation with ESG marks debut in e-mobility market
Brunnthal, July 27, 2010 - Pursuant to a resolution of its shareholders' meeting, SFC Smart Fuel Cell AG changed its name to SFC Energy AG effective July 16, 2010. The change of name reflects the Company's future positioning as a provider of whole-product solutions for off-grid energy supply.
SFC Energy AG generated sales of EUR6,579k in the first half of 2010. This increase of 16.1% from the same period in the previous year (6M/09: EUR5,666k) is primarily attributable to the sales growth in civilian markets as well as further product mix improvement. Sales in the second quarter of 2010 were EUR2,984k, an increase of 6.8% from a year earlier (EUR2,793k).

Gross profit for the first half of 2010 rose sharply, from EUR1,350k in the same period of the previous year to EUR1,976k, which was an increase by 46.4%. Second-quarter gross margin amounted to EUR903k, compared with EUR819k in Q2/09, for an increase of 10.3%. Gross margin surged to 30.0% (6M/09: 23.8%), in Q2/10 it reached 30.3% (Q2/09: 29.3%). Main reasons for the improvements were volume effects, further efficiency gains in logistics and production as well as cost savings realized with fuel cartridges. Second-quarter EBIT came out at minus EUR1,273k, compared to minus EUR1,203k in Q2/09. EBIT for the first half of 2010 improved by 11.4% to minus EUR2,106k (6M/09: minus EUR2,378k). This includes two special effects that were not in the prior-year period: At EUR548k, the costs for establishing the US business and for the new headquarters were above 2009. The result after taxes for Q2/10 was minus EUR1,170k (Q2/09: minus EUR1,042k). The after-tax result for the first half, at minus EUR1,905k, drew level with the year before (6M/09: minus EUR1,915k).
In the first half of 2010, 2,359 A-Series units (EFOY) were sold (6M/09: 2,196), which represents an increase of 7.4%. The increase in revenue for the A-Series segment was predominantly the result of significant growth in the leisure market, for which an increase of 22.5% was posted. A-Series sales in the industry and mobility markets rose by 23.5%. The fact that revenue growth outpaced unit sales growth for A-Series products is based on shifts in the model mix towards more powerful EFOY models. Demand remained brisk for the EFOY 2200 and EFOY Pro 2200 models, which were launched in the fourth quarter of 2009.

Altogether, order intake stood at EUR4,357k in the first half of 2010 (6M/09: EUR5,537k). The volume of new orders achieved in Q2/10 was EUR1,941k (Q2/09: EUR3,195k). The order backlog as of June 30, 2010 was EUR1,191k (June 30, 2009: EUR1,587k). In the defense market, the first positive program decisions were taken by the German Bundeswehr. Under a serial production order, SFC will deliver autonomous systems to provide reliable energy supply in the field for Bundeswehr operations abroad.
In April 2010, SFC and the renowned automotive engineering partner ESG Elektroniksystem- und Logistik GmbH presented a concept of combined heat and power generation (CHP) for electric vehicles. This CHP is targeting to improve the performance of EVs in terms of range and driving under winter conditions. The Company sees interesting mid-term business potential in the attractive e-mobility market.

The volume of cash and cash equivalents without any limitation on disposal stood at EUR36,416k as of June 30, 2010 (December 31, 2009: EUR40,544k).
The Group anticipates sales in the Leisure segment in financial year 2010 to remain at their 2009 level, given the continued challenging market environment. By contrast, it anticipates noticeable sales growth in the civilian markets overall. An important strategic goal remains to make SFC less vulnerable to seasonal and economic fluctuations in the leisure market and the continued unpredictability of the defense market by drawing on a more diversified base. The timing of developments in the defense market is still difficult to estimate, but the program decisions made by the German Bundeswehr in the first half of the year demonstrate that SFC's technology and products are appealing to customers. Based on successful deployment in the field, the Company anticipates that this will lead to additional new orders for its latest product solutions. For the third quarter, the Company expects business to be weaker than in the third quarter of 2009, especially given the coincidence of the usual seasonality in the leisure market, the expiration of economic stimulus programs and the budget uncertainty faced by public-sector fleet managers. However, this does not affect the Company's previous forecast for 2010 as a whole.

The half-year report of SFC Energy AG can be downloaded from the Company's website 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 shipped approximately 19,000 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 9001:2008 certified. SFC is based in Brunnthal, Germany, and has a sales and technical service office in the US. SFC Smart Fuel Cell AG is listed in the Prime Standard on the German stock exchange (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
E-mail: [email protected]

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
E-mail: [email protected]

27.07.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

Language:     English
Company:      SFC Energy AG
              Eugen-Saenger-Ring 7
              85649 Brunnthal
Phone:        +49 (89) 673 592 - 100
Fax:          +49 (89) 673 592 - 169
E-mail:       [email protected]
Internet:     www.sfc.com
ISIN:         DE0007568578
WKN:          756857
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Düsseldorf, Stuttgart  
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