SMA halves profit expectations
Post date: 13/01/2022 - 17:10
The management board of German inverter manufacturer and system technology specialist SMA Solar Technologies AG expects earnings before interest, taxes, depreciation and amortization (EBITDA) of 20 and 30 million euros for fiscal year 2021. Until the corresponding announcement on Wednesday (January 12), €50 million to €65 million was still considered the profit expectation.
The reason for the profit warning is the possible early withdrawal from a major order for operation and maintenance (O&M) of solar power plants. Negotiations are still ongoing with the customer in question, SMA said. »The reason for the ongoing negotiations with our customer are defects in some of the solar parks to be maintained by SMA, which only became apparent after the contract was concluded.«, said CEO Jürgen Reinert: »It would only have been possible through unjustifiable expenses for SMA to fulfill its contractual obligations regarding the performance of the PV power plants. Accordingly, after thorough consideration, we have decided to aim for a cancellation agreement in order to shield SMA from greater damage.«