DGAP-News: SMA Solar Technology AG: Managing Board of SMA

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 --------------------------------------------------------------------- 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. --------------------------------------------------------------------- 30.07.2014 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 279910 30.07.2014