German SMA Solar affirms 2011 forecast despite EBIT drop in H1

Aug 12, 2011 - German solar inverter maker SMA Solar Technology (ETR:S92) said today it is sticking to its full-year forecast although earnings before interest and tax (EBIT) halved on the year in the first half of 2011.

The company still expects revenue of between EUR 1.5 billion (USD 2.13bn) and EUR 1.9 billion and EBIT of EUR 315 million to EUR 475 million in 2011. EBIT-margin is seen at between 21% to 25%.

SMA saw its EBIT decline to EUR 103.7 million in the first six months of 2011 from EUR 219.9 million. First-half EBIT-margin stood at 14.5% in 2011. Net profit more than halved in annual terms to EUR 73.5 million from EUR 158.2 million a year earlier.

SMA's management board estimates that global newly-installed PV capacity for the first half of 2011 stood below the previous year's high level. The debate regarding the PV energy expansion has deeply unsettled end-customers in major solar markets, CEO Pierre-Pascal Urbon said.

However, in the first half of 2011 the company sold an inverter output of 3.1 GW, thus unchanged from the prior-year period.

Revenue, on the other hand declined to EUR 715 million from EUR 815.8 million.

(EUR 1.0 = USD 1.419)

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