SMA Solar keeps 2010 outlook on strong German demand

SMA Solar sticks to its 2010 outlook and posts better-than-expected quarterly results

FRANKFURT, May 14 (Reuters) – SMA Solar, the world’s largest maker of solar inverters, stuck to its 2010 outlook as strong demand in Germany, the world’s biggest solar market, led it to post better-than-expected quarterly results.

"Following a highly successful 2009 fiscal year, demand for our products in the first quarter of this year has been excellent again," Guenther Cramer, the company’s chief executive, said in a statement on Friday.

SMA Solar still expects sales of 1.1 billion euros to 1.3 billion euros (.40 billion to .65 billion) and an operating margin of 20 percent to 23 percent this year.

Demand for solar products is currently up as customers in Germany bring forward orders ahead of solar sector subsidy cuts in July, triggering concerns among the country’s solar elite about how demand will develop once incentives are lower.

SMA Solar in March said it had a share of 43 percent of the global market for solar inverters, a key component in the solar industry, converting direct current generated from solar modules into alternating current.

This is far ahead of unlisted Fronius International and Kaco new energy, the global number two and three – each with a share of below 10 percent – as well as other competitors such as Siemens and Schneider Electric.

SMA Solar (FWB:{yootooltip mode=[cursor] title=[S92]width=[556] display=[inline]}

{/yootooltip}) said first quarter operating earnings before interest and tax came in at 92 million euros, beating the average estimate of 89 million euros in a Reuters poll of analysts.

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