Siemens Gamesa Expects Fiscal Year 2021 Loss as 3Q Provisions Hit Profitability
July 15 2021 - 1:46AM
Dow Jones News
By Joshua Kirby
Siemens Gamesa Renewable Energy SA said late Wednesday that it
now expects a negative operating margin for the full fiscal year,
as higher provisions led to an operating loss in the third
quarter.
The Spanish renewables company, a subsidiary of Germany's
Siemens Energy AG, said it made an adjusted loss before interest
and taxes of 150 million euros ($177.6 million) in the three months
to end-June compared with EUR161 million in the same period the
previous year. Revenue came to EUR2.7 billion from EUR2.4 billion
previously.
In the preceding quarter, Siemens Gamesa made adjusted earnings
before interest and taxes of EUR111 million.
Reassessment of profitability given higher raw-material prices
and costs relating to the 5.X onshore turbine platform, especially
in Brazil, resulted in provisions of some EUR229 million in the
period, Siemens Gamesa said.
In light of the results, the company updated its guidance for
the full fiscal year. Siemens Gamesa now expects an EBIT margin
between negative 1% and 0% for 2021, having previously guided for a
margin of 3%-5%. The company also expects revenue to be at the
lower end of the guided range of EUR10.2 billion-EUR10.5 billion
which it had already lowered in April from a range of EUR10.2
billion-EUR11.2 billion.
The company said it will work to boost profitability through
cost-cutting and efficiency measures, especially relating to the
5.X platform.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
July 15, 2021 01:41 ET (05:41 GMT)
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