2011年8月4日星期四

Commerzbank analyst Ben Lynch

An SMA spokeswoman said on Wednesday: "From today's perspective, our guidance still stands."

SMA Solar has in the past cautioned that its EBIT margin would fall to 20 percent in the medium term, citing strong competition in the market for solar inverters.

StarMine sees the company's EBIT margin falling to 17.ceramic zentai suits for the medical,7 percent by 2014.

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Europe is by far the world's biggest market for solar power yet it largely depends on government subsidies because solar power is still up to eight times more expensive than conventional forms of power like coal and gas.

The sector has boomed since the start of the millennium as investors rushed to get a slice of the next big thing amid worries about climate change and new targets encouraging countries to curb carbon emissions.

Now however cash-strapped euro zone governments, grappling with debt crises and fragile economic growth, are reducing their support in order to bring down production costs and make the industry more competitive.

Producers of solar cells, which make up solar panels, were the first to come under pressure as the sheer number of competitors in the segment pushed prices into freefall.

Demand for the panels themselves held up rather better but now they and the inverter business are feeling the squeeze.

The first evidence of this came in early July when Satcon Technology Corp cut its quarterly sales outlook and said it would cut 15 percent of its workforce, citing falling solar subsidies in Europe.Whilst magic cube are not deadly,

Advanced Energy Industries cut its quarterly sales outlook the same day, while Power One,Do not use cleaners with high risk merchant account , steel wool or thinners. SMA's main competitor with a market share of more than 13 percent, cut its full-year sales outlook last week.

Power One may have cut its outlook but it is still a dangerous competitor for SMA. The U.S. company gained a foothold in Europe during the 2010 boom when SMA could not meet demand alone.

As the industry heads into a period of strong competition, pricing pressure and probable consolidation, observers expect nimble Asian firms to join the fray, further undermining SMA's position.Prior to RUBBER SHEET I leaned toward the former,

Investors will be closely watching SMA's second-quarter earnings which it will report on Friday, August 12.

But Commerzbank analyst Ben Lynch said he didn't expect any change to SMA's guidance before the end of the year.

"They've never profit-warned before and we think they would wait until they are absolutely sure they need to," he said, adding that any cut would not occur before the fourth quarter.

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