Array profits plummeted by 65%! Spend huge sums of money to acquire a famous bracket factory to build the world's largest tracker company

　　Array, located in Albuquerque, New Mexico, had a gross profit margin of US$9.3 million in the third quarter of 2021, compared with US$26.7 million in the same period last year, a 65% decrease year-on-year. The company's net income was -9.8 million U.S. dollars, which was a sharp decline compared with the 12.4 million U.S. dollars profit in the third quarter of last year. The company blamed this on the increase in raw material and logistics costs.

　　Chief Financial Officer Nipul Patel said that Array is continuing to process undelivered orders that were signed at lower prices before the price spike, and the impact of these orders on the company's profit margins is expected to disappear in the first quarter of 2022.

　　Patel said in a conference call with analysts: "The macro environment is still very challenging, shipping costs are rising, the pressure on the supply chain is still very high, and the labor market is also very tight. When formulating financial guidance values, the company considered project delays, material restrictions, project design changes and EPC capabilities."

　　Jim Fusaro, CEO of Array Technologies, said, "In the third quarter, most of our goods were priced in accordance with historical quotations and procurement procedures. Therefore, we believe that the third quarter is the low profit margin of the company. It is expected that the company's gross profit margin will be in the future. Steady improvement in several quarters".

　　It is reported that as of September 30, 2021, Array has executed contracts and the volume of successful bids reached US$1 billion, which is a "new record", a year-on-year increase of 35%. On November 11, Array announced its plan to acquire Spanish tracker manufacturer Soluciones Técnicas Integrales Norland (STI Norland) for a purchase price of US$652 million. According to Array, this will create "the world's largest tracker company."

　　According to the agreement, Array will acquire STI Norland with approximately 570 million euros ($652 million) in cash and 351 million euros ($401 million) in stocks. The transaction is expected to be completed in the first quarter of 2022.

　　STI Norland is the main supplier of solar trackers in Brazil, and Brazil's environment is increasingly conducive to the solar industry. Therefore, this acquisition is extremely beneficial to the development of Array in Brazil.

　　The STI Norland sales team can now sell Array's DuraTrack products. Array said, "These products have the lowest life cost and excellent wind and snow load performance of all tracker systems."

　　This also puts Array in a "leading position" in North America, Latin America and Europe, and has accelerated the company's expansion plans. It is estimated that 30% of the company's revenue in 2022 after the merger will come from international projects, creating a significant cost reduction through economies of scale. Chance.

　　Array said that the merger of Array and STI Norland will create a global leader in trackers. The combined company will be in a leading position in every large solar market outside of China and India. "

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