SMA Solar warns of 2013 loss
SMA Solar Technology, the world’s largest supplier of PV inverters, has lowered its sales and earnings forecast for this year amid a stronger-than-expected decline in European solar markets.
The amended forecast predicts sales of between €0.9m ($1.2m) and €1m, down from sales of between €0.9m and €1.3m previously seen.
SMA also said it expects a net loss of between €80m and €90m for the full year of 2013. Previously, chief executive Pierre-Pascal Urbon had said the company expects to break even this year, but also said it can’t rule out making a loss.
SMA swallowed a net loss of €16.2m during the first six months of the year, compared to a surplus of €59.4m in the year-earlier period.
“As the world market leader, SMA is particularly affected by the changed conditions on the global photovoltaic market. The market is characterised by high price pressure worldwide,” says SMA chief executive Pierre-Pascal Urbon.
“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.”
SMA said it expects to return to profitability next year, when restructuring measures already introduced will be fully effective.
SMA is in the process of shedding 700 jobs in Germany.