SMA cuts sales forecast for 2013

Aside from the unwelcome news of a downward revision of sales and profit figures, the most eye-catching aspect of today’s financial update from SMA Solar Technology is the blithe one-line statement everything will be okay again in 2014.

After an extraordinary meeting of the board of the German inverter manufacturer today, the Niestetal-based company announced it would not, after all, break even for 2013, in line with its previous ‘best case scenario’ and is instead expecting an €80 million-€90 million loss.

The new figure went hand in hand with a €200 million downward revision in forecast sales figures from €900 million-€1.3 billion down to to €900 million-€1 billion, which at least indicates SMA’s worst-case scenario was not overly optimistic.

In an ad hoc company statement announcing the revised figures, SMA blamed a stronger-than-expected decline in European markets as well as the ongoing costs of restructuring Zeversolar, which SMA acquired in March.

The German company acquired a €40 million controlling 72.5% stake in the Jiangsu-based inverter manufacturer as a way into the much more healthy Chinese solar market.

It is perhaps the expectation of a more diverse market going forward that prompted the board to predict sales would return to €1 billion to €1.3 billion next year as the company returns to profitability.