German photovoltaic (PV) manufacturer SMA Solar has recorded first half sales of €715m, €100m less than the same period last year. Consolidated net profit in the first six months was down by more than 50 per cent as the company recorded net profit of €73.5m, compared with €158.2m in 2010. SMA generated EBIT of €103.7m, a significant reduction from last year's figure of €219.9m which was a record period for the company.
SMA generated a significant proportion of revenue outside of Germany where orders accounted for 56.3 per cent of sales compared with 36.4 per cent in the same period last year. Its medium power solutions division accounted for 73.1 per cent of sales, down from 85.7 per cent in the first half of 2010. Sales in the high power solutions division climbed by more than 66 per cent as the company received first half orders worth €170.6m, up from €102.4m last year.
Pierre-Pascal Urbon, CEO and CFO of SMA, said, 'The debate surrounding the expansion of PV energy has deeply unsettled end-customers in major solar markets and led to a reduction in their willingness to invest. However, the fundamental data for the solar industry has improved over the last few months. The broad social consensus that now surrounds the intensified expansion of PV energy, the favourable interest level and the significantly reduced specific costs of constructing a solar power plant compared with the beginning of the year are good conditions for a significant rise in global demand in the second half of the year.'
SMA joins a raft of solar companies experiencing a slowdown in business after a bumper 2010. Government policy changes in Europe along with increasing competition in the sector has been attributed to the difficulty companies are having and new market opportunities in Asia may hold the key to new investment opportunities.