28 June 2011 – trading statement

PV Crystalox Solar has announces that shipment volumes in the first half of the year will be slightly below the guidance of 210-225MW given in the Interim Management Statement released on 19 May.  Wafer ASPs remained broadly in line with earlier expectations in the second quarter and importantly the company has said that its cash position will remain strong at the end of the half year.

Less pleasing is news that PV end-market demand has been much weaker than anticipated, as confirmed by a recent announcement from the German Environment ministry that PV installations in Germany were only 700MW during the March-May period.  This is approximately half the level installed in the same period in 2010 and Germany is the largest PV market.  If current trading conditions continue there may be an operating loss in the second half.  Interim results are due to be released on 18 August 2011.  The share price has slumped to a new low and at this level it would appear unwise to sell ahead of further news.  HOLD.