SMA Solar Technology AG

Earnings Release • Nov 14, 2008

News Details

Corporate | 14 November 2008 06:52

SMA Solar Technology AG: SMA confirms surge in sales and increases sales forecast for 2008

SMA Solar Technology AG / Quarter Results

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The issuer / publisher is solely responsible for the content of this announcement.

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• Q3 strongest quarter in SMA’s history with EUR 227 million sales
• Sales up 140% to EUR 519 million in first nine months
• EBIT Q1-Q3 rises to EUR 132 million
• EBIT margin Q1-Q3 improves to 25.4%
• SMA increases sales forecast for 2008 to EUR 650 to 690 million

The SMA Solar Technology AG (SMA) financial report for the third quarter of
2008 has confirmed the results announced on November 5, 2008: SMA has once
again recorded an extremely positive business performance. On account of
the ongoing strong demand for SMA photovoltaic inverters in Germany and
abroad, sales rose by 120% to EUR 226.7 million in the third quarter
(previous year quarter: EUR 102.8 million). Consequently, SMA generated a
140% surge in sales to EUR 519.3 million in the first nine months of the
fiscal year (previous year nine months: EUR 216.5 million). The
international markets continued to make a key contribution to total sales.
The international share of total sales in the first nine months was 42%
(previous year nine months: 28%)

In the third quarter of 2008, earnings before interest and taxes (EBIT)
amounted to EUR 63.1 million. Accordingly, SMA improved its EBIT in the
reporting period January to September 2008 to EUR 131.8 million (previous
year nine months: EUR 38.2 million). The EBIT margin rose to 25.4%
(previous year nine months: 17.6%). The SMA Group's net profit for the
period rose to EUR 93.9 million in the first nine months which equals an
approx. quadrupling compared to the same period of the previous year (EUR
23.4 million). With 34.7 million shares outstanding as at the closing date
September 30, 2008, SMA generated earnings per share in the reporting
period of EUR 2.71.

'The strong demand for SMA inverters and the excellent quarterly results
this has generated confirm our unique positioning as a technology leader
for PV inverters. The 2008 fiscal year has seen our greatest sales volume
yet, and an increase in our share of the market. Our increasing
internationalization has also been a contributory factor', explains Günther
Cramer, Spokesman of the Board of SMA Solar Technology AG. 'Thanks to
numerous innovations in systems engineering, we have taken a leading role
in the PV sector from the word go and have helped shape the development of
photovoltaics. Our products have for years been synonymous with reliability
and simple installation at competitive prices. We will increase our lead in
the field by stepping up research and development work and continue to
bring new and innovative products onto the market.'

On the basis of the positive business performance in the third quarter, SMA
management is increasing its sales forecast for fiscal 2008 to EUR 650.0 to
690.0 million. Management thus anticipates a doubling in total sales
compared to the previous year. The EBIT margin is estimated to be 23% -
25%.

'Future development of the photovoltaic market is currently hard to
predict. As a world market leader for PV inverters, SMA is closely
dependant on the development of the PV market', Cramer continues. 'However,
our great production flexibility, short delivery times, large share of the
market and continuing, structured internationalization put us in the best
possible position for reacting to all developments on the markets. For
2009, we expect the photovoltaic market and thus also SMA to experience
continuing growth.'

About SMA Solar Technology AG
SMA generated sales of EUR 327 million in 2007 and is thus worldwide market
leader for photovoltaic inverters, a key component of all photovoltaic
solar power plants. The SMA Group is based in Niestetal, near Kassel, and
is represented by foreign subsidiaries in eight different countries on four
continents. The Group employs a staff of over 2,600 (incl. temporary
staff). SMA produces a broad range of inverters, offering the right
inverter for every type of photovoltaic module in use and for all sizes of
photovoltaic plant. The product range covers both inverters for
photovoltaic plants connected to the grid and inverters for off-grid
systems. The company has been listed on the Frankfurt Stock Exchange Prime
Standard (S92) since June 27, 2008; since September 22, 2008 the company’s
shares have been listed on the TecDAX. In the past, SMA received a number
of awards for its excellence as an employer.

Press contact:
SMA Solar Technology AG

Volker Wasgindt
Head of Press and Association Work
Sonnenallee 1
34266 Niestetal
Germany
Tel.: +49 561 9522-11 21
Fax:+49 561 9522-11 03
Volker.Wasgindt@SMA.de

Investor Relations:
SMA Solar Technology AG
Sonnenallee 1
34266 Niestetal
Germany
Tel. +49 561 9522-22 22
Fax.+49 561 9522-11 03
ir@SMA.de

Link to financial report:
www.SMA.de/IR/Finanzberichte (German)
www.SMA.de/IR/FinancialReports (English)

Disclaimer

This document contains forward-looking statements and information – that
is, statements related to future, not past, events. These statements may be
identified by words such as 'expects,' 'looks forward to,' 'anticipates,'
'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'will,' 'project' or
words of similar meaning. Such statements are based on our current
expectations and certain assumptions, and are, therefore, subject to
certain risks and uncertainties. A variety of factors, many of which are
beyond SMA’s control, affect our operations, performance, business strategy
and results and could cause the actual results, performance or achievements
of SMA to be materially different from any future results, performance or
achievements that may be expressed or implied by such forward-looking
statements. For us, particular uncertainties arise, among others, from
changes in general economic and business conditions (including margin
developments, the legal and regulatory framework, changes in currency
exchange rates and interest rates.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially
from those described in the relevant forward-looking statement as expected,
anticipated, intended, planned, believed, sought, estimated or projected.
SMA does not intend or assume any obligation to update or revise these
forward-looking statements in light of developments which differ from those
anticipated.
14.11.2008 Financial News transmitted by DGAP

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Language: English
Issuer: SMA Solar Technology AG
Sonnenallee 1
34266 Niestetal
Deutschland
Phone: +49 (0)561 / 9522 - 0
Fax: +49 (0)561 / 9522 - 100
E-mail: info@sma.de
Internet: http://www.sma.de
ISIN: DE000A0DJ6J9
WKN: A0DJ6J
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

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