NIESTETAL (dpa-AFX) - SMA Solar Technology AG (SMTGF.PK), a German solar energy equipment supplier, reported a decline in profit for the first nine months of 2024. The company also lowered its outlook for the fiscal year 2024 and announced job cuts by the end of 2025, affecting up to 1,100 full-time positions worldwide. About two-thirds of these cuts will be in Germany.
The company reported that its net income for the first nine months of 2024 dropped to 34.7 million euros from 180.4 million euros in the prior year. Earnings per share were 1.00 euros down from 5.20 euros in the prior year.
Earnings before interest and taxes (EBIT) amounted to 46.0 million euros compared to 201.6 million euros in the same period of the previous year.
Due to decrease in sales volume, which was accompanied by an increase in the Group's cost base, earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 83.5 million euros compared to 231.2 million euros in the prior year.
Group sales were 1.06 billion euros down from 1.34 billion euros in the year before.
In September, the company launched a group-wide restructuring and transformation program aimed at advancing its strategic direction while adapting to the ongoing challenges in the Home and Commercial & Industrial (C&I) sectors. The program focuses on significantly reducing costs and improving liquidity, while also striving for sustainable and profitable growth. This will be achieved through an optimized service portfolio, a refreshed market presence, and a strong commitment to quality and customer service. To enhance efficiency and agility, the company is also streamlining its organizational structure and processes. In addition to operational savings, the measures are expected to generate total cost savings of 150 million euros to 200 million euros.
Looking ahead for full-year, the company now expects EBITDA to be between negative 20 million euros and positive 20 million euros, and sales of 1.450 billion euros to 1.500 billion euros. Previously, it expected EBITDA to be between 80 million euros and 130 million euros and sales of 1.55 billion euros to 1.70 billion euros.
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