German inverter manufacturer SMA says it will not break even in 2013, thanks to European downturn. But SMA's acquisition of Zeversolar is expected to help the company to brighter times ahead.
Aside from the unwelcome news of a downward revision of sales and profit figures, the most eye-catching aspect of today's financial update from SMA Solar Technology is the blithe one-line statement everything will be okay again in 2014.

After an extraordinary meeting of the board of the German inverter manufacturer today, the Niestetal-based company announced it would not, after all, break even for 2013, in line with its previous 'best case scenario' and is instead expecting an €80 million-€90 million loss.

The new figure went hand in hand with a €200 million downward revision in forecast sales figures from €900 million-€1.3 billion down to to €900 million-€1 billion, which at least indicates SMA's worst-case scenario was not overly optimistic.

In an ad hoc company statement announcing the revised figures, SMA blamed a stronger-than-expected decline in European markets as well as the ongoing costs of restructuring Zeversolar, which SMA acquired in March.

The German company acquired a €40 million controlling 72.5% stake in the Jiangsu-based inverter manufacturer as a way into the much more healthy Chinese solar market.

It is perhaps the expectation of a more diverse market going forward that prompted the board to predict sales would return to €1 billion to €1.3 billion next year as the company returns to profitability.