UK’s PV Crystalox Solar shines amid gloom

Though solar companies have taken a beating on account of an oversupply of silicon, Britain's PV Crystalox Solar reported better than forecast first-half sales and said it had seen some improvements in demand, a week following generally disappointing results from a number of US and German solar firms.

The company which makes silicon wafers for major solar cell makers like Suntech Power said on Wednesday said that sales had slid 3.7 per cent at €121.6 million. The company has, however, maintained its dividend at 2 euro cents per share.

The company, had in May, reported 10 per cent lower sales than the €126 million achieved during the same period in 2008 because of customer deferrals, which led analysts to cut earnings forecasts for 2009.

Analysts say the results reflect the company's strong customer base in major solar markets of Japan and Germany.

The company reported a 10.5 per cent drop in operating profit to €41.8 million, which will hit start up operations at its Bitterfeld polysilicon plant in Germany but is stands out in comparison with the huge losses across the industry reported by many solar firms.

According to analysts, solar companies have taken a beating on account of an oversupply of silicon, which depressed prices even as subsidies were cut, oil prices slid and credit cut backs for major projects led to a drop in demand.