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
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search and...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...