SMA Solar sees deeper 2014 loss, plans over 600 lay-offs

Dec 2, 2014 - German solar inverter maker SMA Solar Technology AG (ETR:S92) on Monday guided for a 2014 loss of up to EUR 115 million (USD 143m) and unveiled plans to cut its workforce by "significantly more than 600 employees".

Previously, the company expected to incur a loss of up to EUR 45 million, excluding provisions for planned staff reductions. In a press release Monday, it also lowered its full-year revenue projections to EUR 775 million-790 million from EUR 850 million-950 million due to a drop in demand in the European distribution business, mainly in Germany, as well as project delays in Great Britain. Additional one-off items are also expected to impact SMA Solar's performance.

As part of its plan to return to profitability, the German company intends to lower its development budget to about EUR 80 million annually and let go a significant number of employees by mid-2015. It will also restructure its Chinese unit Zeversolar by the same period.

For the first nine months of the year, SMA reported a consolidated loss of EUR 54.1 million, expanding from EUR 22 million a year ago. Revenues fell to EUR 549.3 million from EUR 709 million.

(EUR 1.0 = USD 1.246)

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