Centrosolar Group AG is one photovoltaic (PV) supplier that is seeing a sea-change in profits compared to last year. The German-based company provides rooftop photovoltaic systems and has branches in the United States, Spain, Italy, France, Greece, Switzerland, and the Netherlands. The company reported record results for the first half of 2010 handily exceeding its own expectations. In fact, its 2010 earnings, thus far, are more than three quarters of the 24 million to 28 million euros that it expected to make this year. The positive results are largely because of increased demand in Germany and Europe.

Demand for Centrosolar’s products has been so high that, despite an increase in production this year from 110 megawatts in April 2010 to about 155 MWs now, the company said it is still unable to meet the full production demand from the German market and the French and Italian markets.

The high demand for PV in Europe has led to sharp increases in the costs of PV, the company said. However, the company is expecting a sharp decrease in German demand for PV products in the second half of 2010. But the company also expects that the fall in local demand will be offset by other markets in Europe and in the United States.

Centrosolar said it expects its growth margin to decline in the third quarter of 2010. The expected decline, according to the company, will come as cell manufacturing capacity catches up with global demand, which will reduce the cost of PV. Because of this expected margin decline, the company is retaining its full-year net income predictions, even though they now look conservative.

During the first half of 2010, the company reported revenue of 209 million euros ($275.5 million as of August 5) and net income of 21.2 million euros ($27.8 million). During the same period in 2009, the company reported a loss of 37.1 million euros. In fact, for the first half of 2010 beat the full-year 2009 results. In 2009 the company reported revenue of 122 million euros and a loss of 11.3 million euros.

For the second quarter alone, the company reported pre-tax operating income of 12.9 million euros on revenue of 124 million euros. At this point, the company projects 2010 revenue of about 370 million euros.