Weekly Investor Round Up
05/15/2009
SustainableBusiness.com News
Companies in the cleantech industry and across the board have seen revenues and profits drop off in the first quarter of 2009. But two companies bucked the trend, posting reports of stong growth.
American Superconductor Corporation (NASDAQ: AMSC) reported its first-ever quarterly profit. The energy technologies company provides superconductor power cables, wind turbine designs and smart grid technologies. Net income for the quarter was $1.3 million, compared with a net loss of $1.8 million a year ago. Revenues were $61.2 million, a 60% increase over $38.4 million a year ago. The company's move into the black is primarily the result of a $450 million contract for wind turbine electrical systems signed with Sinovel Wind Company in June of last year.
Ormat Technologies, Inc. (NYSE: ORA ), a long-time leader in geothermal energy development, also increased revenues and earnings in 1Q09. The vertically integrated company increased quarterly revenue 44% year-over-year to $99 million, resulting in net income of $14.5 million, up from $10 million a year ago and $11.7 million in 4Q08. The company expects continued growth from its products segments as well as from electricity sales, and it expects to add between 72 and 84 megawatts (MW) of generating capacity over the next two years.
Several major announcements were made concerning U.S. manufacturing in the cleantech industry.
GE (NYSE: GE) announced plans to build a $100 million battery manufacturing plant in upstate New York. The company is applying for federal stimulus funds to help build the plant, which will produce sodium-based batteries for heavy power applications. GE believes the segment could beome a $1 billion business over the next decade, providing batteries for rail, marine, mining, telecommunications and utility sectors. The new facility is expected to open in 2011 and will create about 350 jobs.
Chinese solar firm Suntech Power Holdings (NYSE: STP) said it is searching for a location to establish solar manufacturing in the U.S. The company is exploring opportunities in several states for a production and distribution center in an effort to create a long-term presence in the growing U.S. market. Suntech said it will make a decision within the next six months, based on a variety of criteria, including local manufacturing incentives and long-term policy commitments.
Germany's Schott Solar inaugurated the first phase of a new manufacturing facility in Albuquerque, New Mexico, that will produce solar thermal and photovoltaic solar components. Schott said the factory will provide 350 jobs and will ramp up production throughout the summer. Annual capacity for photovoltaic solar modules will be 85 MW, and the factory will make enough concentrating solar receivers to supply up to 400 MW of power. Long-term plans call for quadrupling the size of the facility.
German solar company Q-Cells (QCE.DE) announced plans to issue convertible bonds in an effort to raise EUR 225 million. This follows an announcement last week that the company sold its stake in Renewable Energy Corportation (REC.OL) for EUR 530 million. The company is moving to strengthen its liquidity after posting an unexpected loss in 1Q09.
Software company SAP AG (NYSE: SAP) announced its intent to acquire carbon management firm Clear Standards, Inc. Clear Standards' web-based applications help organizations accurately measure an optimize greenhouse gas (GHG) emissions. With the prospect of a U.S. carbon cap-and-trade program on the horizon, this acquisition may be the first of several in the industry, as large firms look to add mature solutions for carbon management.
Developers of the world's largest offshore wind farm, the London Array, have decided to begin construction this summer, after the British government doubled incentives for offshore wind. The future of the 1,000 megawatts (MW) project has been in doubt since Royal Dutch Shell (RDSa.L) withdrew from the project in May 2008. Denmark's Dong Energy, E.ON (EOAN.DE) and Masdar said they will invest EUR 2.2 billion in the first phase of the project.