Meyer Burger Technology Ltd - MB Wafertec responds to a difficult and highly volatile market environment
Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) today announced the reaction by MB Wafertec, Thun/Switzerland to the difficult and highly volatile market conditions in the photovoltaic industry. The high uncertainties within key markets, which have been exacerbated by current economic difficulties and fiscal policy problems, have caused MB Wafertec (Meyer Burger Ltd, Thun) to adjust their production capacity in recent months. The location in Thun will further adapt its capacity beginning in November 2011 through partial interruptions in the serial production of wire saws in order to meet changes in customer demand. The Group’s targets for net sales and earnings for the current year 2011 remain unchanged from today’s point of view.
Noticeable change in customer behaviour
The looming global economic slowdown coupled with the uncertainty and reluctance of consumers following political decisions to reduce feed-in tariffs in various European countries (Germany, Spain, Italy) have led to dramatic changes in sales trends for solar modules and systems in recent months. These circumstances, as well as the reluctance of the end customer, have forced many solar cell and solar module manufacturers to defer additional projects for the expansion of their production capacities. MB Wafertec is feeling the decline in its customers’ readiness to invest mainly in incoming orders for new production equipment.
The current market difficulties also offer the Meyer Burger Group and the entire industry chances for the future. The cost of manufacturing solar systems across the entire production chain will be further reduced, thus increasing the speed at which the goal of grid parity can be realised. Meyer Burger will continue to very actively and acutely observe the market and, depending on its further development, will take the relevant, appropriate measures for the entire Group.
Planned measures at MB Wafertec
Based on the current demand, the Group has decided to interrupt production at its subsidiary MB Wafertec (Meyer Burger Ltd, Thun) for a maximum of three weeks during November 2011. Employees working in production will bridge this time gap through the reduction of existing overtime hours and by taking the balance of unused holidays. Additional measures such as the use of unpaid leave or the possibility of reduced working hours are being considered for December 2011 and will depend upon the situation and degree of capacity utilisation. MB Wafertec has been consistently optimising its production and its entire supply chain management in previous years and is therefore highly flexible and can rapidly adjust its own production capacity to meet any fluctuations in demand. As soon as the customers’ preparedness to invest recovers, the company will be able to increase its production and delivery capacities accordingly within the shortest period of time.
Targets for fiscal year 2011 remain unchanged
From today’s point of view, Meyer Burger Technology Ltd confirms its targets for the fiscal year 2011. A large number of machines are currently being transported to customers’ facilities or are already at customers’ locations and, in accordance to the delivery agreements, will be accepted by customers before year-end. Hence, Meyer Burger confirms its previous expectation to achieve net sales of approximately CHF 1’200 million and an EBITDA margin of between 23-25% for the fiscal year 2011 (excluding pro-rata results of Roth & Rau AG).
Additional information:
Werner Buchholz
Head of Corporate Communications
Tel +41 (0) 33 439 05 06
w.buchholz@meyerburger.ch
Ingrid Carstensen
Corporate Communications
Tel +41 (0) 33 439 05 06
i.carstensen@meyerburger.ch
About Meyer Burger Technology Ltd
http://www.meyerburger.com/
Meyer Burger is one of the world’s leading providers of innovative systems and production lines for photovoltaics in the solar industry and for the semiconductor and optoelectronic industries. Highly efficient wafers made from silicon, sapphire and other crystals are required in these three markets to manufacture solar modules, switching circuits or high-performance LEDs. The Group’s core competences encompass a broad range of production processes, machines and systems that are used for the production of ultra-thin, high quality wafers, for the inspection and measurement of solar cells, for laminating, soldering and testing of solar module and for building-integrated solar systems. With the acquisition of Roth & Rau AG, with its cutting-edge products and technologies for the next generation of crystalline silicon solar cells, Meyer Burger Group is further expanding its market leadership along the entire photovoltaics value chain. The merger of the two companies creates a full-line system provider which covers the most important technology elements in the photovoltaics value chain, from crystalline silicon to complete solar systems, specifically in the production processes of wafering, solar cells and solar modules. The Group’s comprehensive range of products includes a worldwide service network with wear and tear parts, consumables, re-grooving services, process know-how, customer support, after-sales services, training and other services. As a globally active company, Meyer Burger Group is represented in Europe, Asia and North America in the respective key markets and has over 2,500 employees since the Group’s expansion in August 2011.
Meyer Burger has its headquarters and the production facility of MB Wafertec (Meyer Burger Ltd) in Switzerland, while the group companies, Meyer Burger Automation GmbH, Hennecke Systems GmbH and AMB Apparate + Maschinenbau GmbH have their headquarters and production facilities in Germany. Diamond Wire Materials Tech, Inc. has its headquarters in Colorado Springs, CO, USA. The production facilities of 3S Modultec, 3S Photovoltaics and Pasan are also located in Switzerland, while Somont is located in Germany. The recently integrated Roth & Rau Group has its headquarters in Hohenstein-Ernstthal in Germany and has subsidiaries in Germany, Italy, the Netherlands, USA and various far Eastern countries. The entire Meyer Burger Group has subsidiaries and own service centres in Germany, Norway, Spain, USA, China, Japan, Singapore, South Korea, Taiwan and India. In other important markets, the Company relies on selected independent agents. The registered shares of Meyer Burger Technology Ltd are listed on SIX Swiss Exchange (Ticker: MBTN).
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This press release may contain “forward-looking statements”, such as guidance, expectations, plans, intentions, or strategies regarding the future. These forward-looking statements are subject to risks and uncertainties. The reader is cautioned that actual future results may differ from those expressed in or implied by the statements, which constitute projections of possible developments. All forward-looking statements included in this press release are based on data available to Meyer Burger Technology Ltd as of the date that this press release is published. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
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