Earnings Release • Aug 7, 2014
Earnings Release
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Corporate | 7 August 2014 07:00
SMA Solar Technology AG: Weak Demand in Europe Negatively Affects Consolidated Earnings of SMA in the Fist Half of 2014
SMA Solar Technology AG / Key word(s): Half Year Results
07.08.2014 / 07:00
SMA Solar Technology AG – Corporate News
Weak Demand in Europe Negatively Affects Consolidated Earnings of SMA Solar Technology AG
in the First Half of 2014
Overview January to June 2014
Niestetal, August 7, 2014-From January to June 2014, SMA Solar Technology AG (SMA/FWB: S92) sold PV inverters with an output of 2.0 gigawatts (Q1-Q2 2013: 2.5 GW) and generated sales of EUR341.2 million (Q1-Q2 2013: EUR461.5 million) in a market dominated by high price pressure. The main reasons for the decline in sales were the slump in demand in Europe and the high price pressure.
The large proportion of sales outside Germany of 70.8% (Q1-Q2 2013: 67.4%) underscores SMA’s strong international position. The most important foreign markets for the company included North America, Australia, Japan and Great Britain. Demand from Europe declined sharply again, primarily because of adjustments to subsidy conditions in major European markets. In Germany alone, demand fell 40% year on year. After the modest development in the first half of the year, the SMA Managing Board expects a significant increase in global demand for PV inverters in the coming months, especially in North America, Japan, Great Britain and China.
Due to low sales and the further decline in selling prices, earnings before interest and taxes (EBIT) fell to EUR-62.4 million (Q1-Q2 2013: EUR-23.3 million). This corresponds to an EBIT margin of -18.3%. The operating result includes one-time items resulting from impairment losses of EUR7.0 million. The consolidated earnings for the period amounted to EUR-44.9 million (Q1-Q2 2013: EUR-16.2 million).
With net cash of EUR244.8 million (Dec. 31, 2013: EUR308.1 million) and an equity ratio of 55.5% (Dec. 31, 2013: 57.5%), SMA continues to have a good financial position and can finance further development from its own resources.
“In the coming months, we expect a considerable rise in demand, especially in the international project business. Thanks to our global presence, we will benefit from the forecast development. The Managing Board’s objective is to further extend SMA’s market leadership. By significantly reducing the cost of sales, optimizing our processes and making extensive structural adjustments across the entire organization, we have also satisfied all the conditions required to achieve a return to profitability in the next year,” explained SMA Chief Executive Officer Pierre-Pascal Urbon.
The SMA Managing Board confirms its sales and earnings forecast for the 2014 fiscal year amended on July 30, 2014. It predicts sales of EUR850 million to EUR950 million for the SMA Group. In the best-case scenario, the Managing Board also expects to break even in terms of operating earnings. At the lower end of the sales forecast, the Managing Board anticipates a loss of approximately EUR45 million. The earnings forecast does not take account of any non-recurring expenses from the reduction of 600 staff members announced on July 30, 2014.
You can find the half-yearly financial report for January to June 2014 at www.SMA.de/IR/FinancialReports.
About SMA
The SMA Group generated sales of more than EUR930 million in 2013 and is the global market leader for solar inverters, a key component of all PV plants. SMA offers innovative key technologies for future power supply structures. It is headquartered in Niestetal, near Kassel, Germany, and is represented in 21 countries. The Group employs more than 5,000 people worldwide. SMA’s broad product portfolio includes a compatible inverter for every type of module on the market and for all plant sizes. The product range includes both inverters for grid-connected photovoltaic plants as well as off-grid and hybrid system technology. The product portfolio is supplemented by comprehensive services and operational management of utility-scale PV plants. Since 2008, the Group’s parent company, SMA Solar Technology AG, has been listed on the Prime Standard of the Frankfurt Stock Exchange (S92) and also in the TecDAX index.
SMA Solar Technology AG
Sonnenallee 1
34266 Niestetal
Germany
Head of Corporate Communications:
Anja Jasper
Tel.: +49 561 9522-2805
Press contact:
Susanne Henkel
Manager Corporate Press
Tel.: +49 561 9522-1124
Fax +49 561 9522-421400
Investor Relations contact:
Julia Rother
Manager Investor Relations
Tel. +49 561 9522-2222
Fax +49 561 9522-2223
Disclaimer:
This corporate news serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell any securities of SMA Solar Technology AG (the “Company”) or any present or future subsidiary of the Company (together with the Company, the “SMA Group”) nor should it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.
This corporate news can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.
07.08.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English |
| Company: | SMA Solar Technology AG |
| Sonnenallee 1 | |
| 34266 Niestetal | |
| Germany | |
| Phone: | +49 (0)561 / 9522 – 0 |
| Fax: | +49 (0)561 / 9522 – 100 |
| E-mail: | [email protected] |
| Internet: | http://www.sma.de |
| ISIN: | DE000A0DJ6J9 |
| WKN: | A0DJ6J |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP News-Service |
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| 281171 07.08.2014 |
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