SMA Solar Technology AG to Register Growth in Sales and Earnings in Third Quarter
Overview January to September 2019:
- Inverter output sold increased to 7.5 GW (Q1-Q3 2018: 6.2 GW)
- Sales clearly above the previous year’s level at €630.8 million (Q1-Q3 2018: €575.1 million)
- Earnings before interest, taxes, depreciation and amortization (EBITDA) of €25.7 million (Q1-Q3 2018: €50.5 million)
- Financial stability thanks to solid equity ratio of 40.5% (December 31, 2018: 42.9%) and net cash of €259.1 million (December 31, 2018: €305.5 million)
- Continued high order backlog of €797.0 million, of which €428.7 million is attributable to the product business (December 31, 2018: €175.4 million of product business)
- Cost reduction program develops as planned
- Managing Board confirms its sales and earnings guidance for the 2019 fiscal year
From January to September 2019, SMA Solar Technology AG (SMA/FWB: S92) sold PV inverters with a total output of around 7.5 GW (Q1-Q3 2018: 6.2 GW). Sales increased by 9.7% year on year to €630.8 million (Q1-Q3 2018: €575.1 million). The increase in sales is attributable in particular to very good business performance of all segments in the third quarter. In this period, sales in all segments were up significantly on the previous year’s figures. From January to September 2019, EBITDA amounted to €25.7 million (EBITDA margin: 4.1%; Q1-Q3 2018: €50.5 million, 8.8%; the previous year’s earnings included substantial positive one-time items).
Net income came to –€10.5 million from January to September 2019 (Q1-Q3 2018: €8.5 million). Earnings per share thus amounted to –€0.30 (Q1-Q3 2018: €0.24). With net cash of €259.1 million (December 31, 2018: €305.5 million) and an equity ratio of 40.5% (December 31, 2018: 42.9%), SMA continues to have a solid balance-sheet structure.
“In the first nine months of the year, SMA’s business performance developed as anticipated by the Managing Board,” said SMA Chief Executive Officer Jürgen Reinert. “After a modest development in the first half of the year, we posted significant growth in sales and earnings in the third quarter, as expected. It is particularly pleasing to see that we again generated positive EBIT from July to September for the first time since the second quarter of 2018. Order intake is also continuing to develop positively. As of September 30, 2019, SMA had a product-related order backlog of around €429 million. In this context, the Managing Board expects that we will reach the top quarter of our sales guidance for the 2019 fiscal year and that the good performance in the first quarter of 2020 will continue.”
The SMA Managing Board confirms its sales and earnings guidance for the 2019 fiscal year and predicts sales of €800 million to €880 million. The Managing Board expects SMA to reach the top quarter of its sales guidance and estimates that earnings before interest, taxes, depreciation and amortization (EBITDA) will amount to between €20 million and €50 million. Depreciation and amortization are expected to be approximately €50 million.
The quarterly statement for January to September 2019 can be found at www.SMA.de/IR/FinancialReports.
Source: SMA Solar
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