Sunways CEO sees no plunge in German solar demand-INTERVIEW

Trade the News

Wednesday August 25, 2010 10:18:09 AM GMT

* Says is pleased with business in Q3 so far

* Sees strong boost to business in Italy next year

By Christoph Steitz

FRANKFURT, Aug 24 (Reuters) - Sunways, a German maker of solar modules and inverters, has not seen the plunge in demand in its home market that some analysts and industry leaders had warned of, its chief executive said.

"It was clear that the (German) market would calm down a bit," Michael Wilhelm told Reuters in a interview on Tuesday.

"But I am pleased (with business in the third quarter so far), according to our expectations," he added.

Industry analysts are divided over how much demand in Germany, the world's largest market for solar products, will drop after sector subsidies had been lowered from July, forcing companies to diversify their geographical reach.

Sunways, which makes a fifth of its sales outside of Germany, expects full-year sales of more than 200 million euros ($252.8 million), and a margin for earnings before interest and tax (EBIT) of 6 percent.

According to Thomson Reuters, sales are expected to reach 208 million, with an EBIT margin of 6.5 percent.

In the first half of the year, Sunways, which competes with SMA Solar, SolarWorld and Solon -- has recorded sales of 109 million euros and an EBIT margin of 8.9 percent.

Wilhelm said that the company's business in Italy, which last month announced it was set to cut production incentives for solar power, would see strong growth next year.

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