Siemens Gamesa Shares Drop on Lower 2020 Outlook
November 05 2019 - 5:44AM
Dow Jones News
By Kim Richters
Shares in Siemens Gamesa Renewable Energy SA (SGRE.MC) traded
sharply lower on Tuesday after the turbine maker said its
profitability in the next fiscal year will weaken.
For its 2020 financial year, the Spanish company expects an
adjusted margin on earnings before interest and taxes of 5.5%-7%,
compared with 7.1% achieved in the fiscal year ended Sept. 30. For
the just ended financial year, the margin outlook range was
7%-8.5%.
The company expects full-year revenue of between 10.20 billion
and 10.60 billion euros ($11.39 billion-$11.83 billion) compared
with fiscal 2019 revenue of EUR10.23 billion.
At 1009 GMT, shares in the company traded 8.4% lower at
EUR11.78.
The company, majority-owned by Siemens AG (SIE.XE), said price
pressure is weighing on profitability despite good prospects in the
industry. It has embarked on a restructuring program that has
helped it save a cumulative EUR1.4 billion.
To improve competitiveness, Siemens Gamesa said it would cut 600
white-collar jobs over the next two years.
The new guidance is below expectations, Renta 4 Banco analyst
Angel Perez Llamazares said.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
November 05, 2019 05:29 ET (10:29 GMT)
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