AGO AG publishes Nine-Month-Report 2010

• Focus in 2010 on securing long-term, constant earnings streams
• Sales increase to TEUR 13,995 (+1.1%); EBIT of TEUR 16 (previous year: TEUR 344)
• Gross margin impacted by valuation adjustments and strong competition
• Settlement of the legal dispute with customer in Alperstedt: Significant impairment of the plant’s value results in loss in 2010; coming years will not be impacted by one-off effect

Kulmbach, 22 December 2010: Today, AGO AG Energie + Anlagen (WKN: A0LR41, ISIN: DE000A0LR415) is publishing its IFRS Nine-Month-Report 2010.

In the first nine months of 2010, AGO AG Energie + Anlagen particularly focussed on strengthening the foundations for future company growth and securing long-term, constant earnings streams. Sales revenues went up by 12.8% from TEUR 32.125 to TEUR 36,232 and gross profit from sales dropped by 41.6% from TEUR 3,146 to TEUR 1,838. The gross margin therefore corresponded to 5.07% (previous year: 9.79%). Manufacturing costs increased mainly due to the valuation adjustment and the long, hard winter with heating costs in Alperstedt being high while a legal dispute was still ongoing as of the reporting date. The company was also unable to pass on higher construction costs resulting from the rise in steel prices in these times of economic difficulties and great competition. In the first nine months of 2010, profit from ordinary activities (EBIT) decreased by TEUR 1,090 from TEUR 404 to TEUR -686. Consolidated net profit for the period came to TEUR -1,124 (previous year: TEUR -56). Earnings per share (number of shares: 4,000,000) therefore amounted to EUR -0.28 (previous year: EUR -0.01).

When looking at the third quarter of 2010 on its own, sales revenues of TEUR 13,995 were roughly the same as in the previous year (TEUR 13,841). Gross profit from sales decreased from TEUR 1,440 to TEUR 1,163. The gross margin therefore amounted to 8.31% (previous year: 10.40%). Profit from ordinary activities (EBIT) went down by TEUR 328 from TEUR 344 to TEUR 16. Consolidated net profit for the third quarter of 2010 was TEUR -286 (previous year: TEUR 137).

“We still expect sales to continue rising in financial year 2010. On 24 November, we settled the legal dispute with the customer of the biomass cogeneration plant in Alperstedt and we will have to write off up to three quarters of the plant’s value. This will result in a significant loss in 2010. However, the coming financial years will not be impacted by this one-off effect. With incoming orders amounting to TEUR 44,390 and order backlog of TEUR 46,797 as of 30 September 2010, as well as AGO AG Energie + Anlagen current amount of incoming orders considerably exceeding TEUR 60,000, especially in Germany and Italy, we are confident about the company’s development now that the legal dispute in Alperstedt is over”, said Hans Ulrich Gruber, CFO of AGO AG Energie + Anlagen.

The Nine-Month-Report 2010 is now available for download

About AGO AG Energie + Anlagen

AGO AG Energie + Anlagen, with its registered office in Kulmbach, was founded in 1980 and is specialized in the area of innovative and efficient energy supply facilities for industrial customers and municipalities. Main focus of AGO AG Energie + Anlagen is laid on the following business divisions: plant development and implementation, as well as service and consulting. The core competence of the company mainly commits to thermal power stations, to heating, cooling and ventilation technology plant construction, biomass cogeneration plants and trigeneration. Site studies and development, consulting in energy efficiency, resource and fossil fuel management as well as emission trade management – these factors complete the business model. AGO symbolizes efficiency, security and technological competence of your energy supply facilities.