Solarworld of Germany logged a net loss of 300 million euros ($397 million) last year after recording profit of 87.3 million euros in 2010, the company said in its latest business report released on Thursday. It said, however, that it hoped to be black in the black in 2012.

The Bonn-based solar panel maker's revenues dropped to one billion euros in 2011, down from 1.3 billion euros in the previous year. Solarworld's operative losses for last year were put at 233.2 million euros, whereas the year before the firm booked an operative profit of 192.7 million euros.

At the same time, the company's equity capital decreased by 31.7 percent to 630 million euros in 2011. Solarworld executive members attributed the poor results to a protracted price war among competitors and writedowns on out-of-date production facilities.

Predatory pricing?

Solarworld said it didn't reckon with a stabilization of prices for solar panels yet, but was nonetheless hopeful to enter positive territory again medium-term.

"It's our goal to come up with positive operative earnings before interest and taxes (EBIT) in the current year," the company's business report stated. It added, though, that revenues were unlikely to increase significantly in an environment of fierce competition.

For 2013, Solarworld expects to post net profit again, but will have to do with fewer subsidies and compete with rapidly expanding competitors from Asia, including China and India.

Against the backdrop of its disastrous 2011 net losses, Solarworld shares dropped by 4.4 percent in premarket trade on Thursday, making it the weakest performer among all TecDax-listed German technology-sector companies.

hg / gb (Reuters, dpa)