Q-Cells focuses on bright spots despite sales slowdown

German solar giant Q-Cells yesterday announced that the economic slowdown would lead to lower than expected sales during the current quarter and the first half of next year, but insisted that the medium-term outlook remained upbeat and predicted that it would still enjoy sales growth of at least 40 per cent next year.

In a financial update, the company said that "weakening market demand arising from the financial crisis" had resulted in a number of customers postponing agreed deliveries until next year.

The company said that as a result of the reduced demand, it would now use the period over Christmas and New Year "to perform maintenance work and reduce overtime balances".

However, as a result it now expected production volume for 2008 to amount to 570MW, as opposed to the 585MW previously expected. It added that sales would also be down fractionally on expectations from €1.35bn (£1.18bn) to €1.225bn, while pre-tax profits would amount to approximately €230m instead of the expected €260m.

Q-Cells said that with weak project financing conditions likely to continue, it expected demand to remain lower than expected throughout the first half of 2009, before recovering in the second half of the year.

As a result it revised downwards its projections for the year, estimating that total production for the year would reach between 800MW and 1GW, while sales would hover between €1.75bn and €2.25bn. The company admitted this was down on previous sales projections of €2.25bn, but noted that it would still represent growth on 2008 of at least 40 per cent.

"Due to the increasingly attractive return of photovoltaic appliances, the company expects market demand to increase at the latest from the second half of 2009 and thus still an unabatedly positive mid-term trend," it said in the update.

The news comes a day after German silicon wafer, solar cell and solar module manufacturer EverQ reportedly delayed its planned IPO as a result of the current economic downturn.

According to reports by The Cleantech Group, the company, which was formed as a joint venture between Q-Cells, Oslo's Renewable Energy Corp and US-based Evergreen Solar, has seen sales more than double this year, but is keen to wait for the optimal market conditions to raise capital through an IPO.

EverQ also announced that it was to change its name to Sovello as it seeks to establish its independence from its high-profile parent companies. Officials told The Cleantech Group that the name change would help it attract outside capital to fund further expansion.