SMA cuts sales support as a result of supply chain challenges, project pushbacks

Sep 8, 2021 05:25 PM ET
  • Inverter distributor SMA Solar Technology has reduced its revenue and earnings support for the rest of the year because of the undersupply of digital components.
SMA cuts sales support as a result of supply chain challenges, project pushbacks
Image: SMA Solar Technology

Chief Executive Officer Jürgen Reinert claimed that as a result of recent delivery cancellations, the circumstance has "worsened significantly" for the company in the short term, including: "We are additionally seeing that project programmers as well as capitalists are holding off the application of larger PV projects until the following year."

SMA's board now anticipates 2021 sales to be EUR980 million-- EUR1,030 million (US$ 1,158 million-- US$ 1,217 million), down on the company's previous guidance of EUR1,075 million-- EUR1,175 million. Full-year EBITDA is expected to be EUR50 million-- EUR65 million, compared to the earlier EUR75 million-- EUR95 million forecast.

Despite caution of potential delivery ability constraints for the rest of the year, SMA had validated its previous sales and also incomes guidance in its H1 results statement, published last month.

"We are in extensive contact with our companions on the provider side in order to establish ideal remedies to secure distributions and to compensate for distribution hold-ups as far as possible in the coming weeks," Reinert said.

The business remains to expect H2 sales to be greater than those in H1, when sales decreased 5% year-on-year to EUR488.3 million (US$ 573.1 million). It said this was down to an unwillingness amongst tiny as well as medium-sized services to spend early in the year as a result of uncertainties bordering COVID-19.

SMA stated in its H1 results announcement that while it maintained supply chains in the first half, a lack of electronic components had a "small total effect" for sale. Nonetheless, H1 EBITDA of EUR38.1 million was up 59% on the very same 6 months last year.

Supply chain obstacles were additionally just recently kept in mind by Enphase Energy, which is adding brand-new distributors of motorists used in its flagship microinverter products. In its second-quarter results news, the firm claimed supply restrictions were influencing the rollout of its IQ8 microinverters.

Elsewhere, module suppliers have actually also been affected by supply chain traffic jams, with Meyer Hamburger missing components required for the full ramp-up of its plants in Germany and also Maxeon Solar Technologies revealing last month it might not have the ability to deliver some products to consumers on time due to basic materials and components supply problems.