Welcome!

News Feed Item

3W Power/AEG Power Solutions Reports Results for Q1 2014

AEG Power Solutions (FWB:3W9):

(in € million)   Q1 2014   Q1 2013   Δ in %   Q1 2014   Q4 2013   Δ in %
Order backlog   101.9   94.0   8.4%   101.9   88.1   15.7%
Orders   64.1   60.0   7.0%   64.1   54.1   18.5%
Revenue   45.4   94.4   -51.9%   45.4   64.9   -30.0%
Book to Bill   1.4   0.6       1.4   0.8    
EBITDA   8.7   6.7   30.2%   8.7   (14.0)    
EBITDA margin   19.1%   7.1%       19.1%   -21.5%    
Normalized EBITDA   (8.3)   7.1       (8.3)   1.2    
Normalized EBITDA margin   -18.2%   7.5%       -18.2%   1.8%    

3W Power S.A. (ISIN LU0953526265, 3W9), the holding company of AEG Power Solutions Group, a global provider of UPS systems and power electronic solutions for industrial, commercial, renewable and distributed energy markets, today announced results for Q1 2014.

Group results for Q1 2014

AEG Power Solutions finished Q1 2014 with €64.1 million of orders, a promising start to the new year, and €45.4 million in revenue. Compared to Q1 2013, orders were up 7.0% (Q1 2013: €60.0 million) however revenue was down 51.9% (Q1 2013: €94.4 million). Normalized EBITDA of -€8.3 million (Q1 2014 EBITDA: €8.7 million) was down from Q1 2013 Normalized EBITDA of €7.1 million (Q1 2013 EBITDA: €6.7 million). Normalized EBITDA excludes capital gains and restructuring costs.

In the first three months of 2014 the Group completed several major actions with respect to its global financial and operational restructuring program. The POC module business was sold to Advanced Energy Industries. The capital gain (net of proceeds) of the sale of POC modules is €20.9m. This is offset by an additional €2.6m write-off in capitalized R&D projects. The Group’s affiliate in Bangalore, India was sold to Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC) and is expected to close in Q2 and 3W Power South Africa was sold to ACI SA. The Group’s Telecom Converter business based in Lannion, France was placed into administration and was de-consolidated from the Group.

As at 31 March 2014, the Group maintained €35.8 million in cash and cash equivalents.

Renewable Energy Systems

(in € million)   Q1 2014   Q1 2013   Δ in %   Q1 2014   Q4 2013   Δ in %
Order backlog   17.2   19.6   -12.3%   17.2   14.1   22.0%
Orders   11.2   18.4   -39.5%   11.2   9.2   21.7%
Revenue   7.3   55.7   -86.9%   7.3   10.4   -29.8%
Book to Bill   1.5   0.3       1.5   0.9    
EBITDA   14.6   12.6   15.3%   14.6   (8.9)    
EBITDA margin   200.2%   22.7%       200.2%   -86.2%    
Normalized EBITDA   (4.6)   12.6       (4.6)   (1.1)    
Normalized EBITDA margin   -63.4%   22.7%       -63.4%   -10.9%    

Orders in RES were €11.2 million in Q1 2014, down 39.5% year-on-year (Q1 2013: €18.4 million). This is fully driven by the low order intake in Solar and reduced order intake in POC. RES order backlog was €17.2 million in Q1 2014, down 12.3% year-on-year (Q1 2013: €19.6 million). RES revenue was €7.3 million in Q1 2014, down 86.9% compared to the previous year (Q1 2013: €55.7 million) as a result of last year’s Poly systems revenue and particularly high Solar revenue.

RES Normalized EBITDA in Q1 2014 came to -€4.6 million (Q1 2014 EBITDA: €14.6 million), down from Normalized EBITDA in Q1 2013 of €12.6 million (Q1 2013 EBITDA: 12.6 million). Lower volume, a change in the product mix and the high level of operational expenses led to the drop in EBITDA.

Energy Efficiency Solutions (EES)

(in € million)   Q1 2014   Q1 2013   Δ in %   Q1 2014   Q4 2013   Δ in %
Order backlog   84.7   74.4   13.9%   84.7   74.0   14.5%
Orders   53.0   41.5   27.6%   53.0   44.9   18.0%
Revenue   38.1   38.8   -1.6%   38.1   54.5   -30.1%
Book to Bill   1.4   1.1       1.4   0.8    
EBITDA   (2.3)   (3.6)   -36.9%   (2.3)   2.3    
EBITDA margin   -6.0%   -9.3%       -6.0%   4.2%    
Normalized EBITDA   (0.7)   (3.3)   79.1%   (0.7)   6.1    
Normalized EBITDA margin   -1.8%   -8.6%       -1.8%   11.2%    

Orders in EES were €53.0 million in Q1 2014, up 27.6% year-on-year (Q1 2013: €41.5 million). The order backlog stood at €84.7 million in Q1 2014, up 13.9% year-on-year (Q1 2013: €74.4 million). Industrial UPS reports a 35% growth compared to the prior year period. Growth comes from a new frame agreement with a large industrial customer and increased volume in the Middle-East. The Primetech acquisition in mid-2013 contributed to orders in Commercial UPS.

Revenue was €38.1 million in Q1 2014, down 1.6% compared to the prior year (Q1 2013: €38.8 million), impacted by the separation of the Telecom Converter business from the Group. UPS systems grew by 20% compared to the prior year period.

Normalized EBITDA in EES in Q1 2014 was -€0.7 million (Q1 2014 EBITDA: -€2.3 million) up 79.1% from -€3.3 million in Q1 2013 (Q1 2013 EBITDA: -€3.6 million).

Outlook

At its core, AEG Power Solutions is a power electronics company delivering high quality uninterruptable power supply systems and solutions for industrial and commercial markets. The Group is active in key vertical markets such as oil & gas, transportation, power generation and general industry. Industrial UPS comprises the core area of AEG Power Solution’s competitive strength, is the source of much of the Company’s technology and provides a solid and resilient revenue base. To solidify its business, worldwide sales activities in the industrial markets are in the process of being reinforced and redeployed to fit the renewed focus.

Advanced power supply systems and solutions focus on power control technology as well as applications for renewable energies and next generation distributed power generation. These include industrial processes requiring precise heat or power over time, distributed power generation, network management as well as Solar and other renewables. These new applications will follow mega trends and have some promising applications in areas such as ballast water treatment, energy storage, and grid stabilization.

In 2010, the Company used its power electronics know how to expand into solar systems. AEG Power Solutions will focus on profitable opportunities in Solar and continue to harvest sales; however, Solar revenues are likely to remain far below previous levels.

With so many changes to the Group structure and activities, providing a fully reliable financial forecast is difficult. With the specific measures in mind, the financial outlook for the Group is expected to improve after the full implementation of the financial and operational restructuring program. As of today, management forecasts revenues of approximately €220 million in 2014, €224 million in 2015 and above €240 million in 2016. EBITDA (after extraordinary expenses) is expected to increase from an anticipated negative €24 million in 2014 to a positive €17 million in 2015 and above €20 million thereafter. At the end of fiscal year 2014 the Company expects to have liquidity of approximately €20 million.

Dr. Dirk Wolfertz, Chairman of the Board of Directors comments, “While we have made a lot of progress in our restructuring efforts in a very short time and are confident that we are on the right path, we will now focus on restoring confidence with our business partners. With the continued stability in our core end markets, I believe we can create a solid base to provide best in class products, services and solutions to our customers around the world.” Jeffrey Casper, CRO of AEG Power Solutions added, “In doing that, profitability and sustainable cash-flow generation will remain key priorities for the Company.”

-- End of Announcement --

About 3W Power/AEG Power Solutions:

3W Power S.A. (WKN A1W2L4 / ISIN LU0953526265), based in Luxembourg, is the holding company of AEG Power Solutions Group. The Group is headquartered in Zwanenburg in the Netherlands. The shares of 3W Power are admitted to trading on Frankfurt Stock Exchange (ticker symbol: 3W9).

AEG Power Solutions (AEG PS) Group is a global provider of power electronics systems and solutions for all industrial and demanding commercial power requirements offering one of the most comprehensive product and service portfolios in the area of uninterruptible power supply and power management.

Thanks to its distinctive expertise bridging both AC and DC power technologies and spanning the worlds of both conventional and renewable energy, the company creates innovative solutions for next generation distributed power generation

For more information, visit www.aegps.com

This communication does not constitute an offer or the solicitation of an offer to buy, sell or exchange any securities of 3W Power. This communication contains forward-looking statements which include, inter alia, statements expressing our expectations, intentions, projections, estimates, and assumptions. These forward-looking statements are based on the reasonable evaluation and opinion of the management but are subject to risks and uncertainties which are beyond the control of 3W Power and, as a general rule, difficult to predict. The management and the company cannot and do not, under any circumstances, guarantee future results or performance of 3W Power and the actual results of 3W Power may materially differ from the information expressed or implied in the forward-looking statements. As a result, investors are cautioned against relying on the forward-looking statements contained herein as a basis for their investment decisions regarding 3W Power.

3W Power undertakes no obligation to update or revise any forward-looking statement contained herein.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...