SOURCE: Q-Cells SE

November 12, 2010 01:10 ET

Q-Cells SE publishes report as of 30 September 2010

BITTERFELD-WOLFEN, GERMANY--(Marketwire - November 12, 2010) - Q-Cells SE / Q-Cells SE publishes report as of 30 September 2010 Processed and transmitted by Thomson Reuters. The issuer is solely responsible for the content of this announcement.

-  Sales at EUR 402 million in third quarter up 20% on previous quarter
-  EBIT at EUR 37 million  in third quarter  and EUR 55 million in first
   nine months of the year
-  Restructuring completed and financing secured
-  Full year sales guidance increased to more than EUR 1.3 billion

Bitterfeld-Wolfen, 12 November 2010 - Q-Cells SE (QCE; ISIN DE0005558662) has taken advantage of strong demand and stable pricing in the third quarter to generate sales of EUR 402 million, up 20% from the second quarter and more than doubled compared to the third quarter 2009 (EUR 183 million). The operative result (EBIT) amounted to EUR 37 million, up 35% from the second quarter and representing a margin increase from 8% in the second quarter to 9% in the third quarter. Nine months sales reached EUR 967million, EBIT for the first nine months of the year amounted to EUR 55 million.

Total production volume of solar cells and thin-film solar modules was around 305 megawatt peak (MWp) in the third quarter, an increase of 28% on the second quarter (238 MWp) and 152% compared to the third quarter 2009 (121 MWp); the figure for the first nine months of 2010 amounted to 717 MWp.

Restructuring completed, financing secured

Q-Cells has now managed to successfully complete a comprehensive restructuring programme which had been started in August 2009. Part of the significant improvement in the operative result is due to an improved cost position which Q- Cells achieved through a combination of restructuring measures, the use of the expanded production facilities in Malaysia and the flexibilisation of sourcing contracts leading to favourable conditions.

Nedim Cen, CEO of Q-Cells SE commented: "The restructuring measures continue to deliver results. However, tight cost control and management of investments and the liquidity position will stay in the focus going forward."

On 27 September Q-Cells announced a financing package including a capital increase and issuance of a convertible bond. The resulting net proceeds of around EUR 242 million have already been used, together with existing cash of EUR 27 million to buy back the majority of an outstanding convertible bond due for repayment in February 2012. The remaining amount of around EUR 211 million will be repaid with proceeds from early repayment of the LDK loan and cash inflow from existing projects.

Marion Helmes, CFO of Q-Cells SE said: "Securing the financing of the convertible bond at such an early stage will give us additional manoeuvring space in challenging market conditions."

Comprehensive product portfolio and internationalisation

The comprehensive product portfolio launched in June 2010 addresses specific customer needs with different applications. The portfolio ranges from solar cells and modules to complete systems for commercial and industrial as well as utility scale, each contributing to the performance of the company.

The complete ramp-up of the Malaysian production site to a capacity of 600 MWp has been achieved in good time. For the first time production of solar cells in Malaysia was higher than in Germany. Deliveries of crystalline modules amounted to 26 MWp in the third quarter, down from 44 MWp in the second quarter. This was due to quality issues in ramp-up and production at processing partners, which meanwhile have been eliminated.

The commercial and industrial scale systems business started well, one roof-top example for the third quarter being an agrarian project of almost 1 MWp in Northern Germany (Oschersleben). Moreover, a number of projects have been contracted with local partners in Ontario, Canada, resulting in some 110 MWp in 2010/2011. Q-Cells has identified North America as one of the focus markets for its internationalisation. Overall, the North American market is expected to generate 2 GWp in 2011.

Transformation started successfully

The new product portfolio launch, including crystalline solar modules and systems has contributed to a higher and more stable margin profile. It is expected that Q-Cells can significantly widen its footprint in a broader segment of the photovoltaics market with a revamped sales organisation and the evolution to a customer focused company.

"With the restructuring and refinancing completed our main focus now has to be on securing competitiveness, driving the internationalisation of the business, and establishing Q-Cells firmly as a photovoltaics solution provider," said Nedim Cen, CEO of Q-Cells SE.

Q-Cells is forecasting total sales of more than EUR 1.3 billion (previously EUR1.2 to EUR1.3 billion) and an EBIT of around EUR 75 to 80 million for the full year 2010. For 2011 Q-Cells expects a more challenging market environment.

Further details can be found in the Report as of 30 September 2010 and a presentation on the published figures available on the Q-Cells SE website (www.q-cells.com) under Investor Relations.

-------------------+-------------------+-----------------+-----------------
                   |            Q3 2009|          Q2 2010|          Q3 2010
-------------------+-------------------+-----------------+-----------------
 Production volume |            121 MWp|          238 MWp|          305 MWp
-------------------+-------------------+-----------------+-----------------
 Sales             |  EUR 183.2 million|EUR 333.5 million|EUR 401.6 million
-------------------+-------------------+-----------------+-----------------
 EBIT              | EUR -105.0 million| EUR 27.1 million| EUR 36.7 million
-------------------+-------------------+-----------------+-----------------
 EAT continuing    |                   |                 |
 Operations        |EUR -113. 7 million| EUR 37.0 million| EUR 13.3 million
-------------------+-------------------+-----------------+-----------------

About Q-Cells:

The Q-Cells Group is one of the world's leading photovoltaics companies. Its extensive product portfolio ranges from solar cells and modules to turnkey photovoltaics systems. Q-Cells' products are developed and manufactured at its headquarters in Bitterfeld-Wolfen (Germany) and marketed via its global sales network. It also has a second production plant in Malaysia.

The more than 200 scientists and engineers at Q-Cells are working to swiftly advance solar technology and achieve Q-Cells' twin aims: driving down the costs of photovoltaics quickly and permanently, and making solar power competitive. The close links between R&D and production enable Q-Cells to rapidly translate cutting-edge innovation into mass production - and underpin its ambition to be at the forefront of photovoltaic technology.

Q-Cells is quoted on the Frankfurt Stock Exchange (QCE; ISIN DE0005558662) and also listed on the TecDAX, the German technology index.

[HUG#1461969]

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Q-Cells SE OT Thalheim, Sonnenallee 17-21 Bitterfeld-Wolfen Germany

WKN: 555866;ISIN: DE0005558662;Index:CDAX,GEX,TecDAX,Prime All Share; Listed: Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Bayerische Börse München, Prime Standard in Frankfurter Wertpapierbörse, Regulierter Markt in Frankfurter Wertpapierbörse;

Presentation Report as of 30 September 2010: http://hugin.info/136506/R/1461969/401017.pdf

Report as of 30 September 2010: http://hugin.info/136506/R/1461969/401016.pdf

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(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Q-Cells SE via Thomson Reuters ONE

Contact Information

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    www.q-cells.com
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