The corona pandemic casts a heavy shadow over the quarterly financial statements published by wind turbine manufacturer Siemens Gamesa on Thursday. The company has been hit hard by rising costs and delivery difficulties, which are a consequence of changing shutdowns around the world.
The company, which has many thousands of employees in the Danish branches in Brande, Vejle and Aalborg, recorded a deficit of 403 million euros (almost 3 billion kroner) for the last three months of 2021. Last year, Siemens Gamesa delivered a profit of 11 million euros in the same period. Revenue took a dive of 20.3 percent compared to last year and ended at 1.83 billion euros.
The EBIT result ended at minus 309 million. euros, which is in line with what the company announced in its preliminary financial figures on January 20.
- We continue to be part of a very complex market with disruptions and low visibility in the supply chain. In this context, we continue to take measures to protect profitability and to adapt to the dynamics that will continue in the coming months, says Andreas Nauen, who can call himself CEO of Siemens Gamesa for another month. Prior to the financial statements, the wind turbine manufacturer had announced that Naeun had been fired.
Lowering expectations
He will be replaced on March 1 by Jochen Eickholt, who will try to get the ship back on track. But there is no immediate prospect that the delivery problems will be resolved. Therefore, the company has lowered its expectations for both revenue and earnings for the full financial year.
Siemens Gamesa has thus adjusted its guidance for revenue for the year to between -9.0 percent and -2.0 percent. The expectations for the EBIT margin are now -4.0 percent and 1.0 percent. Previously, the company expected revenue to fall by between -7 percent and -2 percent, and an EBIT margin of +1 percent and +4 percent.
On the other hand, the company's order book is constantly getting thicker and currently has orders for 33.6 billion. euros.
In addition to increased costs, Siemens Gamesa has had problems with its land-based 5 megawatt turbine, where development problems have resulted in additional costs of billions of kroner.
Competitor Vestas has also reported challenges with rising raw material prices and increased transportation costs, which means that it has been forced to raise prices.
amp / Ritzau
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
