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
the Chinese subsidiary Zeversolar," said Urbon. Prompted by the regional
shift in demand, SMA is also planning to bring together sales regions and
streamline the organization in Service, Operations and Administration. By
the end of 2015, SMA is planning to lay off approximately 600 employees
worldwide. The temporary contracts that expire and the natural employee
turnover are part of the downsizing plan. Additionally, measures will be
defined for downsizing of 400 employees from Sales, Operations and
Administration areas.

"The additional measures are necessary because the profitability of our
product portfolio has been adversely affected by the shift in demand to
countries outside Europe. In order to generate sustainable earnings, SMA
will therefore need to do even more than previously planned to reduce
costs. We very much regret that further job cuts in Germany and abroad are
unavoidable due to the changes in the market," explained Pierre-Pascal
Urbon.

With the implementation of the planned measures, the CEO believes that SMA
is in a good position for the future: "As a specialist for system
technology and a global market leader, SMA offers complete system solutions
for all power classes. With the planned product offensive and the
structural adjustments, we are going to create the conditions required to
generate attractive margins even in a challenging market environment. In
addition, we also anticipate a slight increase in our market share for 2014
to more than 15% worldwide. In the future, additional sales impulses will
also be generated by our Service business and by the photovoltaic diesel
hybrid business. With net liquidity of EUR250 million and an equity ratio
of almost 60%, SMA will be able to implement this strategy under its own
steam."

About SMA 
The SMA Group generated sales of more than EUR930 million in 2013 and is
the global market leader for solar inverters, a key component of all PV
plants. SMA offers innovative key technologies for future power supply
structures. It is headquartered in Niestetal, near Kassel, Germany, and is
represented in 21 countries. The Group employs more than 5,000 people
worldwide. SMA's broad product portfolio includes a compatible inverter for
every type of module on the market and for all plant sizes. The product
range includes both inverters for grid-connected photovoltaic plants as
well as off-grid and hybrid system technology. The product portfolio is
supplemented by comprehensive services and operational management of
utility-scale pv-plants. Since 2008, the Group's parent company, SMA Solar
Technology AG, has been listed on the Prime Standard of the Frankfurt Stock
Exchange (S92) and also in the TecDAX index.

SMA Solar Technology AG
Sonnenallee 1
34266 Niestetal
Germany
Head of Corporate Communications:
Anja Jasper
Tel.: +49 561 9522-2805
Presse@SMA.de

Press contact:
Susanne Henkel
Manager Corporate Press
Tel.: +49 561 9522-1124
Fax +49 561 9522-421400
Presse@SMA.de

Investor Relations contact:
Julia Rother 
Manager Investor Relations 
Tel. +49 561 9522-2222
Fax +49 561 9522-2223
IR@SMA.de

Disclaimer:
This corporate news 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 corporate news 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.



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Language:    English                                                
Company:     SMA Solar Technology AG                                
             Sonnenallee 1                                          
             34266 Niestetal                                        
             Germany                                                
Phone:       +49 (0)561 / 9522 - 0                                  
Fax:         +49 (0)561 / 9522 - 100                                
E-mail:      info@sma.de                                            
Internet:    http://www.sma.de                                      
ISIN:        DE000A0DJ6J9                                           
WKN:         A0DJ6J                                                 
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, München, Stuttgart  
 
 
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