May 9 (Renewables Now) - SMA Solar Technology AG (ETR:S92) today reported first-quarter (Q1) sales and earnings that are in line with its guidance for January-March 2019 and confirmed its forecast for the full year.
The German inverter manufacturer turned to a quarterly loss of EUR 10.6 million (USD 11.9m) from a profit of EUR 2.8 million a year back, with sales decreasing to EUR 167.8 million from EUR 182.5 million due to the “still weak project business”.
Earnings before interest, tax, depreciation and amortisation (EBITDA) reached EUR 0.6 million, compared with EUR 17.5 million in the same period of 2018 and a Q1 forecast, published in late March, for a result between a loss of EUR 5 million and breakeven. EBITDA margin dropped to 0.4% from 9.6%.
The management board continues to expect sales of between EUR 800 million and EUR 880 million and EBITDA ranging from EUR 20 million to EUR 50 million for the full 2019. The company noted that the positive development of order intake in all segments during the quarter is seen to result in a significant rise in sales and earnings, particularly in the second half of 2019.
In January-March 2019, SMA Solar sold 1.8 GW of photovoltaic (PV) inverters, the same level as in the first quarter of 2018. It registered a high order backlog of EUR 619.8 million, including EUR 233.2 million that is attributable to the product business.
“In the utility segment in particular, we are experiencing an extremely positive development, which will have an impact on sales and earnings in the second half of the year,” commented CEO Juergen Reinert.
(EUR 1.0 = USD 1.119)