SMA Solar shares fall 30% in Frankfurt early trade after profit warning (updated)
19/06/2024 07:49
(Adds analyst comment and segment detail in paragraphs 4 and 5)
By Louis van Boxel-Woolf
June 19 (Reuters) - Shares in German solar power parts
supplier SMA Solar Technology AG S92G.DE fell 30% in the
Frankfurt early trade on Wednesday after it cut its profit
guidance on Tuesday night, citing political uncertainty.
SMA Solar now expects 2024 operating earnings (EBITDA) of
between 80 and 130 million euros ($85.9 million to $139.6
million), down from 220 to 290 million euros, and sales of
between 1.55 and 1.7 billion euros, down from 1.95 to 2.2
billion euros.
High inventories and a volatile market were to blame for the
cut, SMA said in its statement on Tuesday, with the recent
outcome of the elections to the European parliament and upcoming
presidential elections in the U.S. contributing to uncertainty
in the market.
The size of the cut suggests weak order growth or even a
decline until the third quarter at SMA's Home Solutions and
Commercial & Industrial Solutions segments, analysts at
Jefferies wrote in a note.
The two segments last year made up about 55% of SMA's
sales and over 60% of operating profit (EBIT).
($1 = 0.9314 euros)
(Editing by Ludwig Burger
)
((Louis.vanBoxel-Woolf@thomsonreuters.com;))