After weathering the storm in the solar industry for a long time, the effects of falling prices and the global overcapacity that hit manufacturers are expected to feed through into the results due to be announced by inverter maker SMA Solar on Thursday.
Having recently taken over the production of Danish rival Danfoss, SMA is expected to report an earnings before interest and tax (EBIT) loss of 59 million (US$81.5 million) for 2013.
News agency dpa-AFX is predicting consolidation in the inverter industry last year will have seen SMA’s turnover fall by a third to 969 million for a net annual loss of 42 million.
SMA directors started a restructuring process that saw headcount significantly reduced in 2013 and the associated costs, together with start-up costs at Chinese subsidiary Zeversolar are expected to have hit earnings by about 79 million.
The Danfoss deal, which saw the Danish company acquire a 20% stake in SMA, is not expected to bring any tangible rewards this year with both companies expecting to make ‘double-digit-millions’ expenditure savings from next year onwards.
For this year, the SMA board is targeting a rise in turnover to 1 billion-1.3 billion and a full year result anywhere between breaking even and a small profit of up to 20 million.
Translated by Kevin Campbell.