DGAP-News: SMA Solar Technology AG / Key word(s): Forecast
SMA Solar Technology AG: SMA Continues to Expand Technology
Development and Internationalization in 2012. Future Outlook is
Impacted by Radical Reduction in Feed-in Tariffs in Germany.
02.03.2012 / 13:43
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SMA Solar Technology AG Press Release
SMA Solar Technology AG Continues to Expand Technology Development and
Internationalization in 2012. Future Outlook is Impacted by Radical
Reduction in Feed-in Tariffs in Germany.
Kassel/Niestetal, March 2, 2012 - The Managing Board of SMA Solar
Technology AG (SMA/FWB: S92) estimates that the global photovoltaic market
will experience subdued growth in 2012. Forecasts are clouded by
uncertainty about massive cuts to solar power subsidies and the expected
decline in market development throughout Europe. The Managing Board
believes that the radical reduction in subsidies, particularly in Germany,
will lead to lower demand for medium to large-scale PV plants. At the
moment, it cannot be predicted whether Asian and American markets can fully
compensate for the decline. SMA will continue to pursue its 2012
internationalization strategy and invest even more into technology
development.
The Managing Board of SMA Solar Technology AG is expecting only moderate
growth in the global photovoltaic market in 2012, although a decline in the
market remains a possibility. Growth in European markets will be impacted
by massive cuts to incentive programs. In Germany especially, the radical
cuts to solar power subsidies that were hastily adopted will lead to a
market downturn for medium to large-scale PV plants. 'SMA depends on the
global market. Declining demand in Europe will thus affect the bottom line
of SMA,' says Pierre-Pascal Urbon, Speaker of the Managing Board and Chief
Financial Officer.
In light of these changes in the solar industry, the SMA Managing Board
predicts that 2012 sales will decline to EUR1.2 billion to EUR1.5 billion
with an EBIT margin between 5 percent to 10 percent. 'In terms of target
profitability, SMA is above the German electrical industry but below the
figures the company reported from the previous year. Technological
innovations alone are not enough to compensate for such a sudden drop in
sales. Given the current price level of PV plants, foreign markets will
develop at a faster pace. In response we will pursue our
internationalization strategy even more aggressively and increase foreign
sales to over 80 percent. This will allow us to significantly reduce our
dependence on the German photovoltaic market,' explains Pierre-Pascal
Urbon.
To drive the key technologies of tomorrow, SMA will invest over EUR100
million in research and development. 'The success of the energy revolution
depends on technologies for managing decentralized energy production and
integrating energy storage solutions. By focusing on strategic areas such
as energy management and grid integration at an early stage, SMA is
currently able to offer solutions that can meet demands of the future,'
remarks Mr. Urbon. 'Our expertise allows us to play an active role in
ushering in the global energy revolution. It not only helps us stand apart
from the competition, but also allows us to lower system costs.'
PV plant prices have actually gone down by almost 60 percent since 2008.
According to Mr. Urbon, the lower prices are primarily the result of
technological innovations. 'Today photovoltaics are becoming commercially
competitive and increasingly being used on a global scale. Thanks to our
wide range of high quality and flexible products combined with our
subsidiaries in 19 countries and a tight-knit service network, SMA is
uniquely positioned in the photovoltaic market. SMA has the financial
strength to take advantage of future growth opportunities on its own,' says
the Speaker of the Managing Board.
The Managing Board predicts an increase in sales in all business areas over
the coming years. However, due to the foreseeable changes in different
incentive programs and the generally high dynamism of global photovoltaic
markets, accurate forecasts are currently not possible.
About SMA
The SMA Group generated sales of EUR1.9 billion in 2010 and is the global
market leader for solar inverters, a key component of all PV plants. It is
headquartered in Niestetal, near Kassel, Germany, and is represented in 19
countries on four continents. The Group employs more than 5,300 people
worldwide, including temporary seasonal employees. 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 covers both inverters
for photovoltaic plants connected to the grid as well as inverters for
off-grid systems. Therefore, SMA is able to provide ideal technical
inverter solutions for all plant sizes and types. 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. aIn recent years, SMA has received numerous awards for excellence as
an employer and most recently achieved first place in the nationwide 'Great
Place to Work' competition.
SMA Solar Technology AG
Sonnenallee 1
34266 Niestetal
Germany
Head of Corporate Communication:
Anja Jasper
Tel. +49 561 9522-28 05
Press@SMA.de
Press contact:
Susanne Henkel
Press Officer
Tel. +49 561 9522-1124
Fax +49 561 9522-531400
Press@SMA.de
Investor Relations contact:
Stephanie Kniep
Director Investor Relations
Tel. +49 561 9522-2222
Fax +49 561 9522-2223
ir@SMA.de
Julia Damm
Investor Relations Officer
Tel. +49 561 9522-1164
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
executive 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.
End of Corporate News
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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
End of News DGAP News-Service
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159150 02.03.2012
DGAP-News: SMA Solar Technology AG: SMA Continues to Expand Technology Development and Internationalization in 2012. Future Outlook is Impacted by Radical Reduction in Feed-in Tariffs in Germany.
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