Christoph's Feed
Oct 12, 2010

Solar M&A on the rise: Latham & Watkins

FRANKFURT (Reuters) – Private equity investors can still find gems in the battered solar industry and are expected to buy in soon, above all in the area of equipment manufacturing where margins seem robust, a senior M&A lawyer said.

“It’s very likely that we will see M&A activity in this segment within the next two years,” Marcus Herrmann, partner at law firm Latham & Watkins LLP, said on Tuesday at the Reuters Global Climate and Alternative Energy Summit.

Sep 23, 2010

Germany could see solar power cap: BlackRock

FRANKFURT (Reuters) – Rising costs for solar power in Germany could either trigger a further large cut in sector subsidies or a cap on new installations in the world’s No.1 solar market, a BlackRock fund manager said.

Power transmission grid operators are obligated to pay feed-in tariffs (FIT) to producers of solar power, which are then added to customers’ bills, and critics have noted that ballooning demand for photovoltaics leads to higher costs.

Sep 22, 2010

E.ON renewables eyes 2010 oper profit jump

HUSUM, Germany (Reuters) – E.ON, the world’s largest utility by sales, is confident it can grow operating profit at its renewables unit by about 70 percent this year, benefiting from a massive increase in installed capacity.

“We will power ahead with this business,” Frank Mastiaux, chief executive of E.ON’s Climate & Renewables unit, told Reuters late on Tuesday in an interview at a wind conference in the hamlet of Husum, about a 90-minute drive north of Hamburg.

Sep 17, 2010

Cells pleased with Q3, can’t meet demand: CEO

FRANKFURT (Reuters) – Solar cell maker Q-Cells is pleased with third-quarter business amid booming demand in Germany, the world’s biggest solar market, its chief executive told Reuters.

“We are running at full capacity and are unable to meet the huge demand,” Nedim Cen said in an interview on Thursday at the company headquarters in Bitterfeld-Wolfen, once the hub of the former East Germany’s ailing chemicals industry.

Sep 15, 2010

SMA sees lower EBIT margin in 2011 vs 2010

FRANKFURT (Reuters) – SMA Solar, Germany’s top solar company by market value, expects its operating margin to drop next year as it warned that falling subsidies for solar power could cause the market to shrink.

Demand for solar products has been spiking in Germany ahead of expected subsidy cuts there, prompting SMA Solar to raise its 2010 outlook for the second time since July. Rivals Q-Cells and Centrotherm also hiked their sales forecasts last month.

Sep 9, 2010

Basel III to be less harsh than feared – BlackRock

FRANKFURT (Reuters) – A new set of banking rules expected to be finalised over the weekend will not be as tough as feared by some market participants, a BlackRock fund manager said, but cautioned about the sector’s long-term momentum.

Regulators and central bank officials are expected to wrap up discussions about new capital rules for the financial sector as soon as this weekend, German Bundesbank President Axel Weber said on Wednesday.

Sep 9, 2010

Deutsche Telekom’s U.S. ops: boon or bane?

FRANKFURT, Sept 9 (Reuters) – Deutsche Telekom AG
(DTEGn.DE: Quote, Profile, Research, Stock Buzz), Europe’s biggest telecoms group by sales, has
delivered a stable if uninspiring stock performance, but its
shares may suffer from uncertainty over the future of its U.S.

T-Mobile USA, once the group’s cash cow, has been struggling
with customer losses and margin pressure. It is a distant fourth
in the U.S. market behind AT&T (T.N: Quote, Profile, Research, Stock Buzz), Verizon (VZ.N: Quote, Profile, Research, Stock Buzz) and Sprint
Nextel (S.N: Quote, Profile, Research, Stock Buzz).

Sep 8, 2010

Union Investment fund banks on Chinese demand

FRANKFURT (Reuters) – A new Union Investment fund is aiming for rapid expansion to up to half a billion euros as it banks on the consumption boom in market behemoths China and India, its manager told Reuters in an interview.

China and India together account for more than a third of the world’s population. Analysts expect growing middle class prosperity to boost spending on consumer goods.

Sep 6, 2010

E.ON, RWE rise as on hopes for extra nuclear profits

FRANKFURT, Sept 6 (Reuters) – Shares in Germany’s utilities
E.ON (EONGn.DE: Quote, Profile, Research, Stock Buzz) and RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) climbed on hopes for billions
of euros of extra profits from a decision to extend the
lifespans of nuclear power plants in Europe’s biggest economy.
Late on Sunday, Chancellor Angela Merkel’s ruling coalition
agreed that the 17 nuclear power plants operating in Germany
would get approval to operate longer depending on their age,
giving each power plant an average extension of about 12 years.

Nuclear power stations are the most profitable large-scale
power plants once building costs are paid off, as the fuel is
cheaper than fossil fuels, companies don’t need carbon
certificates and don’t have to fully insure them.
“Our first reaction is positive because the extension is
longer than we expected,” said Merck Finck analyst Theo Kitz.

Aug 23, 2010

Beiersdorf: higher margins or priced-in recovery?

FRANKFURT, Aug 23 (Reuters) – German blue-chip Beiersdorf
(BEIG.DE: Quote, Profile, Research) failed to inspire investors when it offered a mixed
bag of results this month and only confirmed its vague 2010
outlook of sales growing faster than the market. [ID:nLDE6731N3]

The market is divided whether the maker of Nivea skin care
products and Labello lip balm makes a good investment. Thirteen
out of 40 analysts rate it “buy”, 12 “sell”, while the remaining
15 have a “hold” rating, Thomson Reuters StarMine shows.

    • About Christoph

      "I'm responsible for the coverage of German renewable companies, mainly solar, at Reuters News. Previously, I have worked as a correspondent at Thomson Financial News, covering German technology and construction companies."
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