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SMA Solar Technology AG: Managing Board of SMA Anticipates Difficult Fiscal Year 2015 and Plans Global Staff Reductions

DGAP-News: SMA Solar Technology AG / Key word(s): Miscellaneous
SMA Solar Technology AG: Managing Board of SMA Anticipates Difficult
Fiscal Year 2015 and Plans Global Staff Reductions

26.01.2015 / 21:19

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SMA Solar Technology AG - Corporate News

Managing Board of SMA Solar Technology AG Anticipates Difficult Fiscal Year
2015 and Plans Global Staff Reductions

Niestetal, January 26, 2015-The Managing Board of SMA Solar Technology AG
(SMA/FWB: S92) is anticipating a difficult fiscal year 2015 and a decline
in sales. For 2014, the Managing Board is confirming the upper end of the
sales forecast of EUR790 million and a loss of up to EUR115 million
(excluding provisions for the planned staff reductions). Due to the lower
level of sales, the SMA Managing Board is planning to cut approximately
1,600 full-time positions in all functional areas by June 30, 2015.

"We expect to see high price pressure on the global photovoltaic market
still in the coming years and a further decline in demand in Europe,
particularly in Germany. By contrast, the non-European markets will develop
positively. This means, that although the market measured in gigawatts will
continue to grow in the medium term, we expect to see a global decline when
measured in euros. To return to profitability in this environment, we want
to make adjustments to SMA's structures in line with the lower sales level.
This is the only way that we can break even with reduced sales. In this
context, global staff reductions are unfortunately unavoidable. We have
already defined extensive measures that we will discuss with the Works
Council over the next weeks," said SMA Chief Executive Officer
Pierre-Pascal Urbon. "However, the effects of these measures will not
emerge until the second half of the year at the earliest, meaning that SMA
will probably not yet return to profitability in the current fiscal year."
With net cash of approximately EUR220 million, SMA will be able to finance
the transformation and the implementation of the strategy with its own
resources, Urbon continued.

In relation to the 4,667 full-time positions (excluding temporary
employees) as of December 31, 2014, the SMA Managing Board is planning to
cut approximately 1,600 full-time positions worldwide by June 30, 2015.
Approximately 1,300 full-time positions in Germany and approximately 300
full-time positions at SMA's international locations are affected. The
cutback targets of over 600 full-time positions that were announced last