SMA reports decreasing revenue in 2018

In 2018, German SMA Solar Technology AG sold PV inverters with a total output of around 8.5 GW. Inverter output sold in the past fiscal year was thus on a par with the previous year (2017: 8.5 GW). As a result of increased price pressure, however, sales fell to around €761 million ($865 million) compared to €891 million ($1,013 million) in 2017, according to preliminary calculations by the SMA Managing Board. The expected earnings before interest, taxes, depreciation and amortization (EBITDA) of around -€67 million ($-76 million), compared to €97.3 million ($110.6 million) in the previous year »are impacted by one-time items as well as provisions for financing the planned restructuring measures« and are within the Managing Board’s guidance.
»Due to the sudden downturn in the photovoltaic market in China, Chinese manufacturers have made increasing inroads into the international markets, creating massive price pressure,« said SMA Chief Executive Officer Jürgen Reinert. »As a result, project developers and investors have postponed the construction of PV power plants in anticipation of a further fall in prices.« In addition, business in commercial PV systems, in particular, was affected by the limited availability of electronic components. According to the company, the storage business also fell short of expectations due to a supply shortage from the battery manufacturers.
The SMA Managing Board expects sales to increase to between €800 million and €880 million ($909 million to $1,000 million) in 2019. »Key stimuli for this will be the expected positive market development in Europe and America and the revival of the storage market.« SMA targets to gain additional market share by demonstrating an even greater focus on customers and introducing new products and system solutions. »It can also be seen from the good order intake that project developers and investors are abandoning their cautious approach and increasingly implementing large-scale PV projects again,« says Reinert
SMA will publish the complete consolidated financial statements for 2018 on March 28, 2019.

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