- Record sales of EUR 816 million in the first six months of 2010
- 3.1 GW inverter output sold owing to unique market position
- Excellent operating profit (EBIT) of EUR 220 million (EBIT margin 27 %) generated
- Limited availability of electronic components still restricts production
- Managing Board confirms sales and earnings forecast 2010
- SMA receives several awards for product innovations as well as financial reporting
Today, SMA Solar Technology AG (SMA/FWB: S92) presents its financial report for the first six months from January to June 2010. With group sales of EUR 815.8 million and an inverter output sold of 3,146 MW, the data published today is slightly above the preliminary figures of July 6, 2010. “This means that the first half year of 2010 was the most successful half year in SMA's history,” says Günther Cramer, CEO of SMA.
SMA is the only inverter manufacturer worldwide offering the matching inverter type for every module type and all performance classes. This unique position enabled SMA to benefit particularly from the strong demand in the first half year of 2010. Main demand incentives came from the German photovoltaics market. Against the backdrop of the early adjustment of feed-in remuneration for solar energy from July 1, 2010, many plant operators in Germany brought forward their investments. Greater demand was also recognizable in foreign markets. France, Italy, Belgium as well as North America and Australia were among the most important foreign markets. For the entire year of 2010, SMA’s Managing Board expects substantial growth of the global market to up to 14 GW (2009: approx. 8 GW).
SMA's group sales totaled EUR 815.8 million from January to June 2010. Accordingly, sales more than tripled compared to the same period of the previous year (Q1-Q2 2009: EUR 247.1 million). EUR 476.5 million was attributable to the second quarter (Q2 2009: EUR 160.4 million), which corresponds to about 58 % of total sales. Development of sales in the first half year was influenced by the limited availability of electronic components. In total, SMA sold an inverter output of 3.1 GW in the first six months, of which 1.9 GW in the second quarter alone. The Managing Board of SMA maintains its sales forecast of EUR 1.5 to 1.8 billion for the entire year of 2010, announced on July 6.
Operating profit (EBIT) improved to EUR 219.9 million in the reporting period (Q1-Q2 2009: EUR 35.0 million). Due to changes in the product mix and economies of scale, the EBIT margin in the first six months of 2010 increased to 27.0 % following 14.2 % in the previous year’s period. For the entire year of 2010, SMA’s Managing Board confirms its profitability target (EBIT) of 24 % to 27 % in relation to sales. Consolidated net profit was EUR 158.2 million in the first half year (Q1-Q2 2009: EUR 26.0 million). In the reporting period, SMA’s earnings per share of EUR 4.56 were almost identical to the figure of the whole of 2009 (2009: EUR 4.64 per share; total number of shares 34.7 million in each year). In the first six months of 2009, the earnings per share were EUR 0.75.
The net working capital more than doubled by June 30, 2010 and increased to EUR 252.6 million (December 31, 2009: EUR 98.6 million). The net working capital was 16.8 % in relation to sales of the last twelve months. Accordingly, the ratio was within the corridor of 16 % to 18 % as expected by the management. In essence, the rise in the net working capital is attributable to the planned increase in inventories (in particular in raw materials, consumables and supplies). With EUR 231.7 million, inventories were more than doubled (December 31, 2009: EUR 112.5 million) in order to ensure the maximum utilization of production.
SMA received several awards in the first half of 2010 for extraordinary achievements. For example, the completely redesigned Sunny Central 800CP won the Intersolar Award. The jury was convinced by this central inverter particularly because of its enormous cost-minimizing potential and its high level of efficiency. In addition, on the occasion of the 25th Photovoltaics Solar Energy Symposium in Bad Staffelstein, SMA received the innovation award for its new three-phase multi-string inverter Sunny Tripower. SMA’s reporting has set new standards for TecDAX companies. Its annual report 2009 won several awards by the League of American Communications Professionals (LACP), including being ranked 18th among the best annual reports 2009 worldwide.
“Due to our high power of innovation and unique position in the solar market, we closed the first half year of 2010 with record results. In the forthcoming months, we will concentrate, in particular, on the increase in our production quantities and on the expansion of our technology and market leadership,” explains Günther Cramer. “Our global presence helps us to benefit from the strong growth of the photovoltaics market. Therefore, we adhere to our sales and earnings forecast.”
The SMA Group generated sales of EUR 934 million in 2009 and is the worldwide market leader for photovoltaic inverters, a key component of all solar power plants. It is headquartered in Niestetal, near Kassel, Germany, and is represented on four continents by 13 foreign subsidiaries. The Group employs a staff of over 5,000 (incl. temporary workers). SMA’s product portfolio includes the most comprehensive range of inverters on the market, offering a compatible inverter for every type of photovoltaic module and for all plant sizes. The product range covers both inverters for photovoltaic plants connected to the grid as well as inverters for off-grid systems. 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. In recent years, SMA has received numerous awards for its excellence as an employer.
SMA Solar Technology AG
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Phone +49 561 9522-11 21
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Phone +49 561 9522-22 22
Fax +49 561 9522-22 23
Julia Damm (Private Investors)
Phone +49 561 9522-11 64
This press release 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 press release 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 executive 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.