DGAP-News

SMA Solar Technology AG: Managing Board of SMA Lowers the Forecast for the Current Fiscal Year

DGAP-News: SMA Solar Technology AG / Key word(s): Profit Warning
SMA Solar Technology AG: Managing Board of SMA Lowers the Forecast for
the Current Fiscal Year

30.07.2014 / 10:40

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SMA Solar Technology AG - Corporate News

Managing Board of SMA Solar Technology AG Lowers the Forecast for the
Current Fiscal Year

Niestetal, July 30, 2014-The Managing Board of SMA Solar Technology AG
(SMA/FWB: S92) has adjusted its sales and earnings forecast for 2014. For
the current fiscal year, the SMA Managing Board expects sales of between
EUR850 million and EUR950 million (previously: EUR1.0 billion to EUR1.3
billion). The Managing Board can no longer rule out the possibility of a
loss in the current fiscal year. The SMA Managing Board expects to break
even at best. At the lower end of the sales forecast, the Managing Board
expects a loss of approximately EUR45 million (previously: operating
earnings of EUR20 million in the best-case scenario). As a result, the SMA
Managing Board announced the layoff of SMA employees.

"After intensive conversations with customers at the key trade fairs in
China, Europe and North America as well as our own market analysis, we
expect to see a stagnation in the worldwide demand for PV systems for 2014
as a whole. Particularly in the core markets in Europe, demand has
collapsed even further than expected due to further cuts in subsidies. The
SMA Managing Board believes that developments over the next few months will
be far more dynamic than in the first half of 2014. In 2014, the most
important foreign markets include North America, Japan and China. Together,
these markets are expected to account for 60% of the global market. The
cut-throat competition is keeping pricing pressure high in the industry,"
said SMA Chief Executive Officer Pierre-Pascal Urbon.

According to Urbon, SMA will further optimize the product portfolio and
take advantage particularly of the synergies resulting from the strategic
alliance with Danfoss in order to return to sustained profitability. "The
first products of a new generation of SMA inverters will be launched in the
first quarter of 2015. By the end of 2015, SMA will focus even stronger on
important strategic development projects and reduce the development budget
to approximately EUR90 million p.a. In addition, we will step up our
efforts to lower production costs for the existing product portfolio. SMA
will also take advantage of the development and purchasing capabilities of