Shares in manufacturing equipment maker Centrotherm Photovoltaics surged during March ahead of solid results for 2010 reported by the company towards the end of the month.In the two weeks before the results Centrotherm’s shares increased by 27%, which investment bank Commerzbank attributed to strength among photovoltaics equities generally and an increased belief that 2011 guidance may be too conservative.
Centrotherm’s results showed that revenue in 2010 increased by 22.6% to €624.2 million, while EBIT (operating profit) more than doubled from €37.2 million in 2009 to €75.4 million last year. EBITDA (earnings before interest, tax, depreciation and amortisation) jumped from €58.6 million to €101.3 million. Earnings per share came in at €2.42, compared with €1.35 in 2009.Centrotherm’s order book position grew to €843.8 million at the year end, up from €797.4 million a year earlier. During the year new orders actually breached the €1 billion mark for the first time thanks to a “very robust trend in new orders”.
The company expects growth in its Silicon & Wafer business to come mainly from expansion in customer production capacity, with a small but growing contribution from ingot-related activities.
For its Cell & Module business, Centrotherm predicts single-tool sales will deliver only moderate growth since tier one customers are being somewhat cautious on capital expenditure for this year. But increasing demand from India and the Middle East is expected to help the firm double its turnkey revenues in 2011.
Centrotherm expects its thin-film business to make a low double-digit loss in 2011, after a disappointing year in 2010. The company is seeing some success with its FHR subsidiary selling to roll-to-roll thin-film manufacturers, and Commerzbank expects the thin-film business to break even in 2012.
Centrotherm has provided guidance of €690-710 million for revenues this year. However, Commerzbank expects sales to come in higher at €730 million with an EBIT margin of 12.1%. It predicts earnings per share for 2011 of €2.78.
Market: Frankfurt
Symbol: CTN
Price: €40.06
12-month high/low: €43.81/€23.60
Market cap: €848m
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