SMA exceeds sales and earnings guidance for 2015

Niestetal, Germany - Preliminary estimates from the Managing Board of SMA Solar Technology AG show sales of about EUR1 billion in 2015 and earnings before interest and taxes (EBIT) of EUR30 million to EUR33 million.

SMA has therefore exceeded the Managing Board's forecast for both figures (sales: EUR925 million to EUR975 million; EBIT: EUR10 million to EUR30 million). Sales were mainly driven by the large-scale PV power plant segment (Utility). At the same time, the residential PV system (Residential) and commercial PV system (Commercial) segments as well as service business also posted growth.

"SMA returned to profitability earlier than expected in 2015," explained SMA Chief Executive Officer Pierre-Pascal Urbon. "We have further extended our market leadership and account for approximately 20 percent of global demand. Following the Company's transformation, we have effectively lowered fixed costs and increased our financial and operational flexibility with extensive measures. We can therefore better respond to the volatile market development and generate profits even when sales are lower than before. We largely completed the unfortunate but necessary staff reduction in a socially responsible manner. As of the end of 2015, the number of employees who had left SMA equates to nearly 1,400 full-time positions."

SMA is expected to have lowered working capital to less than EUR230 million (December 31, 2014: EUR251.0 million) and is in a solid financial position with expected net cash of more than EUR280 million (December 31, 2014: EUR225.4 million) and an expected equity ratio of about 50% (December 31, 2014: 46.8%). SMA is able to implement its long-term strategy with its own resources.

The Company will publish the complete consolidated financial statements for 2015 on March 30, 2016. During Capital Markets Day on January 29, 2016, the SMA Managing Board will provide information on the market and competitive situation, the strategic focus and technological unique selling propositions. In addition, the SMA Managing Board will publish the financial outlook for the 2016 fiscal year.

Source: IWR Online, 27 Jan 2016