PV Crystalox swings to loss as costs rise

21st Aug 2014 12:14

Higher material and services costs, together with adverse currency conversion, offset a modest rise in half-year revenue at PV Crystalox.As such, the group, which supplies multicrystalline silicon wafers, posted a loss of €6.94m, compared to profit of €1.34m in the same period a year earlier. Basic losses per share climbed from 0.5 cents to 4.4 cents. Turnover for the six months totalled €30.09m, up from €28.31m, but this was outstripped by a rise in costs, from €24.70m to €31.34m. The group's major concern continued to be market pricing, saying the oversupply from weaker market demand in China during the first half of 2014 as well as a resumption of international trade disputes was driving prices below industry production costs.Group shipments reached 99mw during the half year, up 18% on the 84mw reported in the same period last year. Chief executive officer Iain Dorrity said: "Despite the continuing challenging PV market conditions, we are pleased to report the group has increased shipment volumes and strengthened customer relationships in Taiwan and Europe. "The group has a healthy net cash balance and maintains significant manufacturing operating capacity. The board believes that its ongoing strategy will maximise shareholder value and position the group to take advantage of an eventual return of a more rational business environment." At the period end, cash had fallen from €69.41m to €35.40m. The share price had dropped 15% to 17p by 11:09.NR