The Managing Board of SMA Solar Technology AG (SMA/FWB: S92) lowers the sales and earnings forecast for the fiscal year 2013. The amended forecast predicts sales of €0.9 billion to €1.0 billion for the SMA Group. In addition, the Managing Board expects a loss of €80 million to €90 million. Previously, the SMA Managing Board expected sales of €0.9 billion to €1.3 billion and in the best case scenario to break even before one-time items in 2013. The reasons for amending the forecast are the decline in the European markets, which was stronger than expected, and the resulting negative sales and earnings of the Medium Power Solutions division as well as the ongoing restructuring of Zeversolar.
"As the world market leader, SMA is particularly affected by the changed conditions on the global photovoltaic market. The market is characterized by high price pressure worldwide. Furthermore, we have a strongly declining demand in our core markets in Europe, that cannot be compensated by the new Asian and American markets. As a result, we adjusted the structures to the changed market conditions and devaluated assets. In addition, there are the start-up losses of Zeversolar. In total, SMA will close the fiscal year 2013 with a loss of €80 million to €90 million," explains SMA CEO Pierre-Pascal Urbon. "With more than €300 million Net Cash at the end of 2013 SMA continues to have a very solid balance-sheet structure and can finance its further development from its own resources."
"With our existing strategy and the measures already introduced, we have taken the necessary steps to be able to return to profitability and sales growth in 2014. Especially the cost reduction and personnel adjustment measures already started will be fully effective for the first time in 2014. With launching the Sunny Tripower in the U.S. and Japan, we will also profit from the strong growth expected in these regions. In addition, we will launch first products from our completely newly developed product platforms. SMA offers highly innovative solutions exactly tailored to the requirements of our future energy supply, which allow us to set ourselves apart from competitors particularly in this attractive growth segment," says Urbon.
In 2014, the SMA Managing Board therefore expects the group's sales to increase to between €1.0 and €1.3 billion and to reach its profitability again.
Background information on the market and forecast for 2013 and 2014 is available at http://www.sma.de/.... In addition, the SMA Managing Board will inform the capital market within the scope of an analyst call on Thursday, Nov. 7, 2013.
Disclaimer:
This press release 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 press release may 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 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.
"As the world market leader, SMA is particularly affected by the changed conditions on the global photovoltaic market. The market is characterized by high price pressure worldwide. Furthermore, we have a strongly declining demand in our core markets in Europe, that cannot be compensated by the new Asian and American markets. As a result, we adjusted the structures to the changed market conditions and devaluated assets. In addition, there are the start-up losses of Zeversolar. In total, SMA will close the fiscal year 2013 with a loss of €80 million to €90 million," explains SMA CEO Pierre-Pascal Urbon. "With more than €300 million Net Cash at the end of 2013 SMA continues to have a very solid balance-sheet structure and can finance its further development from its own resources."
"With our existing strategy and the measures already introduced, we have taken the necessary steps to be able to return to profitability and sales growth in 2014. Especially the cost reduction and personnel adjustment measures already started will be fully effective for the first time in 2014. With launching the Sunny Tripower in the U.S. and Japan, we will also profit from the strong growth expected in these regions. In addition, we will launch first products from our completely newly developed product platforms. SMA offers highly innovative solutions exactly tailored to the requirements of our future energy supply, which allow us to set ourselves apart from competitors particularly in this attractive growth segment," says Urbon.
In 2014, the SMA Managing Board therefore expects the group's sales to increase to between €1.0 and €1.3 billion and to reach its profitability again.
Background information on the market and forecast for 2013 and 2014 is available at http://www.sma.de/.... In addition, the SMA Managing Board will inform the capital market within the scope of an analyst call on Thursday, Nov. 7, 2013.
Disclaimer:
This press release 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 press release may 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 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.
