26.03.2015
SMA Solar Technology AG DE000A0DJ6J9
DGAP-News: SMA Solar Technology AG: 2014 Result: SMA Solar Technology AG Reports Considerable Loss Due to Market Downturn in Europe, Weak Business in China and One-Time Items
DGAP-News: SMA Solar Technology AG / Key word(s): Final Results
SMA Solar Technology AG: 2014 Result: SMA Solar Technology AG Reports
Considerable Loss Due to Market Downturn in Europe, Weak Business in
China and One-Time Items
26.03.2015 / 09:11
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SMA Solar Technology AG - Press Release
2014 Result: SMA Solar Technology AG Reports Considerable Loss Due to
Market Downturn in Europe, Weak Business in China and One-Time Items
Overview:
- Sales decline to EUR805.4 million due to weak business in Europe and
heavy price pressure (2013: EUR932.5 million)
- Operating earnings (EBIT) of EUR-164.9 million (2013: EUR-89.1 million)
impacted by high fixed costs, business in China and one-time items
- Financial stability thanks to high amount of net cash of EUR225.4
million (Dec. 31, 2013: EUR329.7 million) and a high equity ratio of
46.8% (Dec. 31, 2013: 57.5%)
- Implementation of transformation on schedule - planned staff reduction
is expected to be realized without involuntary layoffs
- Managing Board confirms sales and earnings forecast for fiscal year
2015
Niestetal, March 26, 2015-In the fiscal year 2014 , SMA Solar Technology AG
(SMA/FWB: S92) recorded a sales decline of 13.6% to EUR805.4 million (2013:
EUR932.5 million) primarily as a result of the market development. In
Europe and China, demand for PV inverters fell last year due to a change in
political conditions. The decline was not offset by the growth in North
America. In 2014, the heavy price pressure continued in all markets and
market segments. As measured by the volume of investment, global demand
fell by 10% year on year to EUR3.9 billion (approximately 40 GW of newly
installed power). With a share of approximately 20%, SMA defended its
position as a global market leader in a dynamic and highly competitive
market environment.
In 2014, the international share of sales increased to 76.0% (2013: 71.0%).
The most important foreign markets were North America, Australia, Japan and
Great Britain. Operating earnings (EBIT) were EUR-164.9 million (2013:
EUR-89.1 million). The EBIT margin was -20.5% (2013: -9.6%). The operating
result includes provisions for the planned staff reduction, further
one-time items, for example such as impairment, and the losses of Chinese
subsidiary Zeversolar totaling EUR129.7 million. The operating result
before provisions for the staff reduction is in line with the published
forecast. The consolidated earnings amounted to EUR-179.3 million in the
reporting period (2013: EUR-66.9 million).
"We are not satisfied with our business performance in 2014. Due to our
high fixed costs, we were not able to respond to the significant decline in
demand in Europe fast enough. Demand in Germany almost halved last year as
a result of political decisions. For the current fiscal year, we are
expecting a further decline in the installation of new PV systems in
Germany. In addition, our result in 2014 was impacted by the losses of our
Chinese subsidiary Zeversolar and considerable one-time items. We are
planning extensive transformation measures to generate profits from sales
of only EUR700 million. In this regard, SMA unfortunately needs to lay off
approximately 1,600 employees (full-time positions) worldwide. In the scope
of the severance program that ended on March 25, SMA was expected to be
able to realize the staff reduction in a short period of time without
involuntary layoffs. Currently, there is a gap of approx. 100
full-time-positions in Kassel/Niestetal in order to achieve the planned
target for staff reduction. The fact that we will be able to realize the
planned staff reduction without involuntary layoffs in a short period of
time is a very good result. While the personnel adjustments are extremely
painful for SMA, they are unfortunately necessary to return to
profitability. With net cash of EUR225.4 million and an equity ratio of
approximately 47%, we can finance the transformation from our own
resources," explained SMA Chief Executive Officer Pierre-Pascal Urbon.
Especially the SMA workers council declared its will to find alternative
solutions to involuntary layoffs for the remaining staff reduction.
For the first quarter of 2015, the SMA Managing Board is anticipating sales
of EUR210 million to EUR230 million (Q1 2014: EUR176.3 million) and
operating earnings (EBIT) of EUR-5 million to EUR-10 million. It is
therefore expecting business performance to be more positive than in the
same period of the previous year (Q1 2014: EUR-22.0 million). SMA will make
a strong start to the second quarter with an order backlog of more than
EUR150 million (excluding service business). The Managing Board therefore
confirms the sales and earnings forecast for the current fiscal year and
predicts sales of EUR730 million to EUR770 million. Given that the savings
from the transformation measures currently being implemented will only be
recognized in profit or loss from mid-2015 at the earliest, the SMA
Managing Board is forecasting negative operating earnings (EBIT) of EUR-30
million to EUR-60 million for the current year. The SMA Managing Board
expects to return to positive operating earnings (EBIT) in 2016.
The annual report for 2014 is available online at
www.SMA.de/IR/FinancialReports.
About SMA
The SMA Group with sales of more than EUR800 million in 2014 is the global
market leader for solar inverters, a key component of all PV plants and
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 PV system sizes. The repeatedly awarded
product range includes system technologies for grid-connected photovoltaic
systems as well as off-grid and hybrid systems. The technology is protected
by more than 550 patents. The range of services is supplemented by
comprehensive services and operational management of large-scale PV power
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
[email protected]
Press contact:
Susanne Henkel
Manager Corporate Press
Tel.: +49 561 9522-1124
Fax +49 561 9522-421400
[email protected]
Investor Relations contact:
Julia Rother
Manager Investor Relations
Tel. +49 561 9522-2222
Fax +49 561 9522-2223
[email protected]
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 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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26.03.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: [email protected]
Internet: http://www.sma.de
ISIN: DE000A0DJ6J9
WKN: A0DJ6J
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart
End of News DGAP News-Service
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