Centrotherm Photovoltaics AG (CTN), the German maker of solar-panel production lines, said first-quarter profit jumped 85 percent and orders almost tripled as Chinese manufacturers raced to build factories.
rose to 12.2 million euros ($17.5 million) while orders totaled 224.3 million euros, up from 78 million euros a year earlier, the Blaubeuren-based company said today in a filing. The stock rose as much as 4.5 percent in Germany.
China's JA Solar Holdings Co. and Suntech Power Holdings Co., the world's biggest solar-panel manufacturers, are leading a global expansion that will add at least 9.5 gigawatts of new manufacturing lines this year, a 30 percent increase, while photovoltaic panel installations are set to rise as much as 51 percent, according to London-based Bloomberg New Energy Finance.
"Some investors may have concerns about how is it possible for the positive trend in the equipment sector to continue," said Julien Desmaretz, a renewable-energy analyst at Bryan Garnier & Co. Ltd., who has a buy rating on the stock. "Centrotherm should ease those concerns."
The stock traded at 38.99 euros as of 4:16 p.m. local time, up 4.5 percent, bringing its year-to-date gain to 45 percent.
The company will likely beat its forecasts for 2011 sales of between 690 million euros and 710 million euros, Desmaretz said. Centrotherm assumes global solar panels installations of 20 gigawatts this year compared with New Energy Finance's forecast of as much as 28 gigawatts.
First-quarter sales rose 64 percent to 189 million euros.
The company plans to pay its first dividend this year and will propose paying 70 euro cents per share at its August shareholders meeting.
"Recent development and political debates about nuclear power have definitely shown one thing: renewable energies, including photovoltaic energy, will occupy a firm position in the energy mix of the future," Chairman Robert Hartung said in the filing.
