SMA Solar Technology AG has once again reacted to the continuing decline in business. Contrary to expectations, the downward trend has continued since September, making a new adjustment of the company forecast necessary, the business said on Friday.
The executive board expects only between €760-780 million in sales for this financial year. The guidance had already been significantly revised down to sales of €800-850 million, due to market conditions as a result of the announcement by the Chinese government of its intent to contain the expansion of PV and cut solar subsidies.
The required restructuring measures for SMA in light of the latest forecast, and associated other one-time effects, will weigh on the result for 2018 more strongly than previously assumed, the company said.
According to the new forecast, SMA is expecting a negative EBITDA, in the mid to upper double-digit million euro range.
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The company has maintained an unchanged the outlook for the coming year, though, with further growth and positive EBITDA assumed.
“The SMA managing board has decided early on to adapt the company’s structures to the changed conditions, that are characterized by continued strong price pressure,” said CEO Jürgen Reinert.
SMA also intends to introduce new products to the international market to help lift sales next year.
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