Overview of H1 2013:
- 2.5 gigawatts of inverter output sold (Q1-Q2 2012: 4.0 GW)
- Sales in line with forecast at €461.5 million (Q1-Q2 2012: €833.7 million)
- International share rose to 67.4% (Q1-Q2 2012: 53.7%)
- Positive earnings before interest, taxes, depreciation and amortization (EBITDA) of €14.2 million (Q1-Q2 2012: €114.2 million) affected by one-time items from personnel adjustments of €15.0 million
- Net cash of €348.2 million (Dec. 31, 2012: €446.3 million) and equity ratio of 58.3 (Dec. 31, 2012: 61.8%)
- Managing Board confirms sales and earnings forecast for fiscal year 2013
In the first half of 2013, SMA Solar Technology AG (SMA/FWB: S92) sold PV inverters with an output of 2.5 gigawatts (Q1-Q2 2012: 4.0 GW) in a market environment characterized by increasing competitive pressure and a considerable price slump. Sales decreased by 45% compared with the same period of the previous year to €461.5 million (Q1-Q2 2012: €833.7 million). The international share of total sales, which increased to 67.4% from 53.7% (Q1-Q2 2012), reflects SMA's outstanding international position with excellent sales and service structures and a full range of products. The most important foreign markets in the first half of the year included the U.S., Japan, Australia and Thailand. In Europe, the Eastern European markets, Benelux and Great Britain offered positive stimuli. However, overall demand continued to lag substantially in Europe due to dramatic changes to the subsidy conditions, in particular in Germany and Italy, the unresolved financial crisis and the possible introduction of punitive duties on Chinese PV modules.
Despite the sharp decline in sales, SMA succeeded in generating positive earnings before interest, taxes, depreciation and amortization (EBITDA) of €14.2 million in the reporting period (Q1-Q2 2012: €114.2 million). EBIT was at €-23.3 million in the first half of 2013 (Q1-Q2 2012: €83.7 million). EBIT includes expenses for personnel adjustments of €15.0 million. This corresponds to an EBIT margin of -5% (Q1-Q2 2012: 10%). The ongoing efforts to reduce costs and increase productivity made a positive impact in the second quarter of 2013. EBIT adjusted for expenses for personnel adjustments increased in comparison to the first three months of the fiscal year to €0.2 million. However, this was not sufficient to compensate for the earnings slump in the first quarter of 2013 and the one-time items of the planned personnel changes. The group earnings amounted to €-16.2 million in the reporting period (Q1-Q2 2012: €59.4 million). The considerable decline in operating profit compared with the same reporting period of the previous year is attributable in particular to the sharp drop in sales, the decline in prices and one-time items of the planned personnel adjustments.
With net cash of €348.2 million (Dec. 31, 2012: €446.3 million) and an equity ratio of 58.3% (Dec. 31, 2012: 61.8%), SMA continues to have a solid financial position.
"SMA will continue to invest in technology development to further lower manufacturing costs with entirely new product platforms. We will also pursue our globalization strategy to benefit from demand stimuli in photovoltaic markets outside Europe through a strong local presence. The slump in demand in Europe forces additional cost cutting measures and an adjustment to the personnel structures. By implementing the different measures, we will sustainably improve our competitiveness. In the medium-term, as a specialist for system technology SMA is set to benefit from the trend toward energy management, construction of PV power plants and the supplementation of stationary diesel gensets with PV systems," explains SMA Chief Executive Officer Pierre-Pascal Urbon.
The SMA Managing Board is adhering to its sales and earnings forecast for 2013. This forecast calls for sales of €0.9 billion to €1.3 billion for the SMA Group. With regard to the operating result adjusted for one-time items of the planned staff reduction, the SMA Managing Board expects to break even, at best, but cannot rule out making a loss.
The half-yearly financial report for January to June 2013 is available at www.SMA.de/....
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 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.
- 2.5 gigawatts of inverter output sold (Q1-Q2 2012: 4.0 GW)
- Sales in line with forecast at €461.5 million (Q1-Q2 2012: €833.7 million)
- International share rose to 67.4% (Q1-Q2 2012: 53.7%)
- Positive earnings before interest, taxes, depreciation and amortization (EBITDA) of €14.2 million (Q1-Q2 2012: €114.2 million) affected by one-time items from personnel adjustments of €15.0 million
- Net cash of €348.2 million (Dec. 31, 2012: €446.3 million) and equity ratio of 58.3 (Dec. 31, 2012: 61.8%)
- Managing Board confirms sales and earnings forecast for fiscal year 2013
In the first half of 2013, SMA Solar Technology AG (SMA/FWB: S92) sold PV inverters with an output of 2.5 gigawatts (Q1-Q2 2012: 4.0 GW) in a market environment characterized by increasing competitive pressure and a considerable price slump. Sales decreased by 45% compared with the same period of the previous year to €461.5 million (Q1-Q2 2012: €833.7 million). The international share of total sales, which increased to 67.4% from 53.7% (Q1-Q2 2012), reflects SMA's outstanding international position with excellent sales and service structures and a full range of products. The most important foreign markets in the first half of the year included the U.S., Japan, Australia and Thailand. In Europe, the Eastern European markets, Benelux and Great Britain offered positive stimuli. However, overall demand continued to lag substantially in Europe due to dramatic changes to the subsidy conditions, in particular in Germany and Italy, the unresolved financial crisis and the possible introduction of punitive duties on Chinese PV modules.
Despite the sharp decline in sales, SMA succeeded in generating positive earnings before interest, taxes, depreciation and amortization (EBITDA) of €14.2 million in the reporting period (Q1-Q2 2012: €114.2 million). EBIT was at €-23.3 million in the first half of 2013 (Q1-Q2 2012: €83.7 million). EBIT includes expenses for personnel adjustments of €15.0 million. This corresponds to an EBIT margin of -5% (Q1-Q2 2012: 10%). The ongoing efforts to reduce costs and increase productivity made a positive impact in the second quarter of 2013. EBIT adjusted for expenses for personnel adjustments increased in comparison to the first three months of the fiscal year to €0.2 million. However, this was not sufficient to compensate for the earnings slump in the first quarter of 2013 and the one-time items of the planned personnel changes. The group earnings amounted to €-16.2 million in the reporting period (Q1-Q2 2012: €59.4 million). The considerable decline in operating profit compared with the same reporting period of the previous year is attributable in particular to the sharp drop in sales, the decline in prices and one-time items of the planned personnel adjustments.
With net cash of €348.2 million (Dec. 31, 2012: €446.3 million) and an equity ratio of 58.3% (Dec. 31, 2012: 61.8%), SMA continues to have a solid financial position.
"SMA will continue to invest in technology development to further lower manufacturing costs with entirely new product platforms. We will also pursue our globalization strategy to benefit from demand stimuli in photovoltaic markets outside Europe through a strong local presence. The slump in demand in Europe forces additional cost cutting measures and an adjustment to the personnel structures. By implementing the different measures, we will sustainably improve our competitiveness. In the medium-term, as a specialist for system technology SMA is set to benefit from the trend toward energy management, construction of PV power plants and the supplementation of stationary diesel gensets with PV systems," explains SMA Chief Executive Officer Pierre-Pascal Urbon.
The SMA Managing Board is adhering to its sales and earnings forecast for 2013. This forecast calls for sales of €0.9 billion to €1.3 billion for the SMA Group. With regard to the operating result adjusted for one-time items of the planned staff reduction, the SMA Managing Board expects to break even, at best, but cannot rule out making a loss.
The half-yearly financial report for January to June 2013 is available at www.SMA.de/....
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 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.
