Siemens Gamesa, the worlds second-largest wind turbine manufacturer, reported its latest quarterly earnings this week, and it was a mixed bag of results — in line with previously-announced guidance but well down on past efforts.
It is important to remember that Siemens Gamesa is not yet a full year old — having only completed the merger between Gamesa and Siemens’ Wind Power business back in April of 2017. Further, in November, Siemens Gamesa announced that it was cutting 6,000 jobs as part of its continuing restructuring program. All in all, the company is currently finding its feet and direction, and as such its finances will not necessarily reflect its strengths.
Siemens Gamesa announced its first-quarter earnings on Tuesday (the company’s financial year runs from October to September, making October to December its first quarter), reporting revenues of €2,127 million, well in line of the company’s previously-announced guidance but nevertheless 23% down year-over-year.
Order intake for the company was strong in the first quarter, up 29% to 2.8 GW (gigawatts) and driven by a 19% increase in onshore orders and offshore orders that practically doubled. The company’s service order book grew by 6% to €10,338 million. EBIT (earnings before interests & taxes) pre-PPA, restructuring, and integration costs came to €133 million with a margin of 6.3%. Net income was down €35 million due to restructuring and integration costs and US tax modifications.
Siemens Games is also positive about the market looking forward, expecting the Indian market to stabilize in 2018 and normalize in 2019, and boasted a strong influx of orders from the United States, Denmark, Thailand, and Egypt.
The company has provided guidance of revenues for the full-year 2018 of between €9,000 and €9,600 million, putting the first quarter’s revenue well within expected margins.
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