* Q1 net profit 10.3 million euros, vs 5.9 mln forecast
* Q1 EBIT 13.7 million euros, vs 7 million forecast
* Still sees 2011 sales at 1.5-1.9 billion euros
* Shares rise 5.5 percent
(Recasts, adds CFO, analyst comment, background, shares)
By Christoph Steitz
FRANKFURT, May 13 SMA Solar (S92G.DE), the
world's No.1 maker of solar inverters, kept its 2011 outlook,
banking on a pick-up in demand in the second half and defying
bleak views from competitors for a tough year ahead.
Makers of solar cells and modules, such as First Solar,
(FSLR.O) and Q-Cells QCEG.DE, said earlier this month 2011
would be tough as falling government subsidies hit demand.
But SMA Solar, which accounts for more than 40 percent of
the global market for solar inverters, is maintaining its
outlook for the year after benefiting from its market dominance
to post better-than-expected first-quarter results.
Its shares were up 5.49 percent at 0922 GMT.
Solar inverters convert electricity generated from solar
modules into a form which can be fed into an electricity grid.
"We think there is enough market capacity to serve this (the
photovoltaic) market and enough demand to satisfy it," SMA Chief
Financial Officer Pierre-Pascal Urbon told a conference call,
pointing to a pickup in demand since April.
Graphic on solar inverter market share:
SMA, also Germany's biggest solar company by sales, still
expects a margin for 2011 earnings before interest and tax
(EBIT) of 21 to 25 percent, down from 27.4 percent in 2010.
After posting record sales of 1.9 billion euros ($2.70
billion) last year, this year's sales are expected to come in at
1.5 billion to 1.9 billion euros.
"We believe this is a particularly good time to add SMA to
your portfolio," Jefferies Research analysts wrote, with a "buy"
rating on the stock.
SMA posted first-quarter sales of 256 million euros and EBIT
of 13.7 million euros, down from last year's 92.4 million.
The figures beat low analyst estimates in a Reuters poll
after the company had warned in late March that first-quarter
sales would be above 200 million euros and that operating
profits would break even.
"It's slightly positive for sentiment that SMA Solar managed
to beat expectations but nevertheless the company depends on
improving business conditions in the course of the year," a
Traditionally reporting operating margins of close to 30
percent, SMA Solar said that the EBIT margin for first-quarter
stood at 5.4 percent, down from 27.2 percent a year earlier.
SMA Solar is also coming under attack from new players in
the field such as main rival Power One Inc PWER.O, whose
market share soared last year to make it the global No.2, and
which reported sharply higher quarterly earnings last week.
The company competes with smaller players Fronius and Kaco,
but also with big conglomerates such as Siemens (SIEGn.DE) and
Schneider Electric (SCHN.PA) in the field of solar inverters.
(Editing by Hans Peters)
($1 = 0.7045 euro)