SMA Solar lowers full-year revenue guidance on impact from market downturn in China

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
SMA Solar Technology has lowered its full-year revenue and profit guidance due to the market downturn in China that has led to plummeting product prices and delay’s to PV Power plant development across major markets. Image: SMA Solar

Major PV inverter manufacturer SMA Solar Technology has lowered its full-year revenue and profit guidance due to the market downturn in China that has led to plummeting product prices and delays to PV Power plant development across major markets. 

SMA Solar said that it lowered its expected 2018 revenue to be in the range of €800 million to €850 million, down from previous guidance of €900 million to €1,000 million. 

Based on the revised range of revenue guidance, SMA Solar is expecting its third consecutive year of revenue declines.

The company also guided a major decline in expected EBITDA, due to new restructuring charges yet to be announced in detail. SMA Solar said that it was expecting a break-even to slightly negative EBITDA for the full-year, compared to previous guidance of achieving EBITDA of €90 million to €110 million in 2018. 

Pierre-Pascal Urbon, SMA Solar’s CEO said, “The massive and unexpected reduction of the PV expansion targets by the Chinese government has led to enormous excess capacity in module and inverter production in China. As a result, Chinese manufacturers are putting increasing pressure on international markets. This has once again exacerbated the already steep decline in prices in all markets and segments. In recent weeks, we have seen that project developers and investors are increasingly delaying the implementation of PV projects in the coming year in anticipation of even lower prices. Against this backdrop, SMA is currently recording incoming orders below our expectations.”

Based on the revised range of revenue guidance, SMA Solar is expecting its third consecutive year of revenue declines. 

Read Next

July 29, 2021
Tracker and racking provider Arctech has delivered SkySmart II tracking system to a 575MW agriculture-sharing solar project located in Nangong City, Hebei Province, China.
July 23, 2021
China could install up to 65GW of solar this year, driven largely by a surge in demand for distributed solar installations, while average solar deployment could reach 90GW per year in the years leading up to 2025.
July 16, 2021
Finlay Colville, head of market research at PV Tech Research, explores the critical themes behind the solar industry’s transition from p-type to n-type cell production before previewing PV CellTech Online 2021.
July 15, 2021
Legislation that would ban the import of all products from China’s Xinjiang region into the US has taken a critical step forward, passing the US Senate.
July 13, 2021
Solar PV capacity in Asia Pacific could triple to 1,500GW by 2030, with China driving deployment and Indonesia set to be the region’s fastest-growing market, according to Wood Mackenzie.
PV Tech Premium
June 25, 2021
Yesterday the US government ended months of speculation by enacting a withhold and release order (WRO) on solar imports to the US linked to specific polysilicon providers in China suspected of having used forced labour. Liam Stoker analyses what we know so far and, crucially, what the industry still needs to know before it can proceed.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK