SMA Solar Declines on Global Demand Forecast, Lower Dividend

SMA Solar Technology AG (S92), Germany’s biggest solar-power company by market value, fell the most in almost four weeks after it said global installations may decline this year and proposed a lower dividend.

The stock dropped as much as 9 percent in Frankfurt trading, the most since March 2, and was down 7.8 percent to 34.50 euros at 12:01 p.m. German time. The shares have declined 20 percent this year.

SMA, the world’s biggest supplier of inverters, expects “only” moderate growth in the photovoltaic market this year and sees a possible decline. New capacity is likely to be 20 to 26 gigawatts compared with 23 gigawatts last year, Chief Executive Pierre-Pascal Urbon said today on a conference call. Inverters convert electricity from panels for use in the grid.

In a statement, SMA confirmed its full-year results with a 54 percent drop in operating profit to 240 million euros ($319 million) and maintained its guidance for 2012. It proposed a 1.30-euro per share dividend compared with 3 euros last time.

SOURCE: http://www.bloomberg.com/news/2012-03-29/sma-solar-declines-on-global-demand-forecast-lower-dividend.html