The world's largest producer of solar inverters, SMA Solar Technology (S92.DE) said Friday it will be unable to raise its output in 2Q10 to meet increasing demand, due to a shortage of electronics components.
The company's shares fell roughly 2%, despite reporting the most successful first quarter in the companies history.
SMA said demand for inverters has increased this year, drvien by pull-forward effects due to the planned reduction of feed-in tariffs in Germany in the second half of the year and lower module prices.
However, the company's semiconductor suppliers notified SMA that they would not be able to adhere to their promises for additional delivery quantities. As a result of insufficient supply with electronic components. As a result SMA is currently not able to raise its production significantly beyond the output volume of the 4Q09, as originally intended. This means that SMA cannot take full advantage of 5 megawatts (MW) of new manufacturing established in Germany in 1Q10.
The Managing Board of SMA expects that the supply situation will improve successively in the second half of the year, but by then it will be too late to cash in on the increase in German demand.
SMA maintained its sales forecast for fiscal 2010 of between EUR 1.1 and EUR 1.3 billion with an EBIT margin of between 20% and 23%.
In 1Q10, SMA nearly quadrupled its sales from 1Q09. The total was EUR 339.3 million, up from EUR 86.7 million a year ago. 1Q10 sales represent 1,288 MW worth of inverters.
Net profit for the quarter increased to EUR 66.6 million, up from EUR 5.5 million in 1Q09. As at March 31, 2010, earnings per share were EUR 1.92 (Q1 2009: EUR 0.16).