BERLIN --
SMA Solar Technology AG, Germany’s biggest solar maker, reported a
wider-than-expected loss because demand shifted from its home market in
Europe toward Asia.
SMA incurred a net loss of 67 million euros ($92 million) in 2013,
the Niestetal-based company said today in a statement. That compares
with the 62.4 million-euro-loss average estimate by seven analysts
surveyed by Bloomberg.
The shares fell the most in a month. SMA is the top maker of inverters, which convert solar power for use on the grid. “In order to remain the No. 1 supplier, it is critical
for SMA that it delivers on its promises of cost reduction and
expansion into China, Japan” and emerging markets, Cormac Gilligan,
a solar analyst at IHS Inc., said in an e-mailed statement.
SMA has cut jobs and is reducing costs in a bid to
counter falling sales in Europe. It expects revenue to improve to as
much as 1.3 billion euros this year from 933 million euros and an
operating profit of as much as 20 million euros even as price pressure
accelerates amid subsidy cuts in the region.
SMA, which has invested 300 million euros in the last
three years on research and development, is developing a “completely new
product platform for all applications” that will lead to lower material
costs, Chief Executive Officer Pierre-Pascal Urbon said today on a call
with analysts.
China Market
Besides cutting costs, SMA needs to do more to sell
its products to Asia, IHS’s Gilligan said. China and Japan will account
for 44 percent of global photovoltaic installations this year, and for
35 percent of inverter revenues, he said. “SMA currently has a very
minor position in both of these markets.”
SMA in February agreed to sell a 20 percent stake to
Danfoss A/S in exchange for its inverter business and a procurement and
sales partnership that will increase revenues in markets including China
and the U.S. SMA’s 2012 purchase of a majority stake in China’s Jiangsu
Zeversolar will help it win access to the Asian country’s market, Urbon
said last year. SMA fell as much as 9.6 percent in Frankfurt, the
steepest intraday drop since Feb. 27. The shares were down 7.5 percent,
at 41.92 euros, as of 2 p.m. local time.
Copyright 2014 Bloomberg
http://www.renewableenergyworld.com/rea/news/article/2014/03/top-inverter-maker-sma-loss-wider-than-expected-after-market-shifts
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