SMA Solar reports €1.7 billion in sales for 2011; market share declines

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Citing an intensely competitive market environment, SMA Solar Technology, the leading PV inverter manufacturer, reported preliminary full-year financial results of €1.7 billion in sales for 2011. SMA Solar had previously cut €200 million from its previous forecast of €1.9 billion to €1.7 billion, with results therefore coming in at the lowered figure. SMA Solar reported 2010 sales of €1.9 billion. Earnings before interest and taxes (EBIT) were reported as being more than €240 million.

SMA Solar revealed an increase in overseas sales to approximately 55%, up from 45% in 2010. According to the company, project business made up about 25% of the Group's sales, up from 18% in 2010. There was also a shift in product mix with increased demand for larger inverters.

Market share manoeuvrings

The company claimed that it maintained a global market share of 35% in 2011, the same as the share in 2010. However, when reporting 2010 results the PV inverter supplier claimed a global market share of between 39% and 45% and 40% share was claimed in 2009.

According to IMS Research, SMA is still the largest supplier of PV inverters in the world but its market share is claimed to be closer to 30%. The disparities occur, according to IMS, because SMA underestimates global demand levels.

Ash Sharma, senior research director at IMS Research, told PV-Tech that by their calculations, SMA lost a lot of market share in Q1, down to 22% but then recaptured a loss share Q2 and Q3.  However this may be at the expense of their Q4 results, according to Sharma, as IMS channel checks were said to have showed that there was a lot of SMA inverters in inventory up to Q3 as SMA’s inventory grew more than its rivals and as a result would have lost share in Q4 as a result.

Key to the market share disparities, according to Sharma is that SMA is underestimating the global demand. Indeed, SMA said in a statement reporting 2011 results that the global PV market installations reached 23GW in 2011, but as PV-Tech reported, IMS and IHS iSuppli are expecting installations to have topped 26GW for the year.

“In late 2011 they [SMA Solar] increased their estimates for global demand in 2010 to 23GW, we estimate it was actually 19.4GW as they’re counting a lot of Italy installations in 2010,” noted Sharma. “Based on their 23GW market size, their share in 2010 would have been 34% in 2010, despite claiming it was 40%.

Sharma also noted that SMA was comparing its shipments with installations to calculate market share. However, Sharma believes that SMA should use total industry shipments (i.e. including inventory) to calculate market share.

2012 guidance

According to SMA it expects slight industry growth in global demand in 2012. Regional markets expected show growth this year includes the US, Japan and India.

However, SMA stated that its management couldn’t provide a reliable forecast for the year, due to numerous changes in important markets and uncertainty caused by the current euro and financial crisis.

As a result, management said that it would at this time be providing a sales and earnings forecast for 2012.

26 January 2022
Join this free webinar for our analysis of the growth of N-Type technology including; new capacity expansions and production output. We'll also be looking at the global manufacturing footprint with forecasts on how much product will be made outside of China this year and which companies are driving technology change across the crystalline silicon value chain.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.

Read Next

January 18, 2022
Hive Hydrogen and Linde plc have teamed up to establish the “world’s largest green ammonia export plant” in Nelson Mandela Bay, South Africa that will have a 780,000 ton/year production capacity.
January 18, 2022
Corporate funding in the global solar sector reached a ten-year high in 2021 as the industry recovered from a COVID-affected 2020, new research from Mercom Capital Group reveals.
January 17, 2022
A round-up of the latest projects news, including EDP Renewables completing Indiana’s largest PV project, two Gulf utility companies pricing their first green bonds and an Australian utility linking its project to the national grid.
January 17, 2022
US independent power producer DESRI is planning to raise up to US$100 million in an initial public offering (IPO) that will see the company listed on the Nasdaq.
January 17, 2022
Solar module manufacturer Seraphim has launched its new S5 series of high-efficiency PV modules with a maximum power output of up to 670W and an efficiency of 21.57%.
January 17, 2022
Oman has signed an agreement with energy major bp that will support the potential development of multiple gigawatts of renewables and green hydrogen in the Middle Eastern country by 2030.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal