Reuters: Hot Stocks: UPDATE 1-Solar company Meyer Burger seeks 150 mln Sfr from shareholders

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UPDATE 1-Solar company Meyer Burger seeks 150 mln Sfr from shareholders Mar 25th 2013, 08:38 Mon Mar 25, 2013 4:38am EDT * Net loss of 116 mln Sfr vs 36 mln franc net profit yr-ago * 2012 sales halve to 645 mln Sfr * Says could break even with 2013 sales of 500 mln Sfr * Shares slide more than 5 percent * New shares underwritten, terms to be issued April 25 (Adds analyst comment, shares) ZURICH, March 25 (Reuters) - Swiss solar equipment maker Meyer Burger said it would tap shareholders for 150 million Swiss francs ($159.5 million) after a slump in demand for solar cells pushed it to a full-year loss. The maker of production equipment for solar cells made a net loss of 116 million francs for 2012 after a profit of 36 million a year ago, in line with its guidance issued in November. The loss provides more evidence of problems facing the solar industry, where companies in Europe and the United States have struggled with overcapacity, falling prices, low-cost Asian competition and cuts in government subsidies. SolarWorld is in talks with creditors on a restructuring plan and Bosch said last week it would sell or shut down its heavily loss-making solar energy operations. The boom-and-bust fortunes of solar energy providers particularly in Germany are also evident at former heavyweight Conergy and at Q-Cells, which filed for insolvency last year. Meyer Burger's stock slid more than 5 percent in early trade, in part because the capital hike had come earlier than analysts expected, according to Bank Sarasin, which also said the latest results statement would likely lead to downgrades in earnings forecasts. STOP GAP "The forecast cuttings will likely lead to further pressure on the share price," said Sarasin analyst Martin Schwab, who rates the shares at "reduce". By 0816 GMT shares in Meyer Burger were down 5.6 percent at 6.6 francs. They fell as low as 6.52 francs, their lowest since early December. Meyer Burger's capital hike is meant as a stop-gap to replenish cash resources - which stood at 134.5 million francs at year-end - until cost-cutting and other measures take effect. The company has shed 22 percent of its workforce since the start of 2012 as part of efforts to cut spending by 60 million francs annually from this year. It has taken out 30 million francs in loans to invest in its production and technology site in Thun, Switzerland. For the current year it said it expected a "significant" increase in orders, mostly in the second half. Due to a lag in how the company books revenue, pre-payments that customers are willing to make for this year's orders will be key, the company said. "Meyer Burger expects net sales ... of about 400 million Swiss francs for the current year ... whereby the larger part will be recorded during the second half of the year," it said in a statement. The company said it could break even in terms of earnings before interest, tax, depreciation and amortisation (EBITDA) if it could win sales of 500 million francs this year. In 2012, sales fell to 645 million from 1.32 billion year-ago. A banking syndicate will underwrite all the new shares, which will be offered to existing shareholders. Terms will be set on April 25. ($1 = 0.9402 Swiss francs) (Editing by Jane Merriman and David Holmes) Link this Share this Digg this Email Reprints

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