Amid the buzz and enthusiasm at Europe's largest solar trade show, The smarter E – Intersolar in Munich, Germany, participants celebrated a successful first day. However, the mood at 2 German inverter companies – SMA Solar Technology and Solarnative – was somber.
SMA Solar saw its shares plummet by 31.7% as it announced a cut in its profit guidance. The company attributed this downgrade to prevailing political uncertainties.
SMA Solar now predicts its 2024 operating earnings (EBITDA) to be in the range of €80 million to €130 million, a decrease from the previous forecast of €220 million to €290 million. Similarly, anticipated sales have been adjusted downwards to between €1.55 billion and €1.7 billion, compared to the earlier estimate of €1.95 billion to €2.2 billion.
The company's Home Solutions and Commercial & Industrial Solutions segments, which collectively accounted for about 55% of SMA's sales and over 60% of its operating profit (EBIT) last year, are also expected to underperform. This shortfall is attributed to elevated inventory levels and a volatile market environment.
The company also cited the recent European parliament elections and the upcoming US presidential elections as factors contributing to market instability and uncertainty.
Meanwhile, the unlisted German company specializing in power inverters for home solar systems, Solarnative, also announced that it is urgently looking for a buyer or investor to maintain solvency. The company cited intense price competition from Chinese rivals and excessive inventories due to last year's oversupply as the primary reasons for this move.
In response to these pressures, Solarnative will cut 35 jobs and has withdrawn its financial guidance for the year.
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