Siemens Gamesa reduces loss in Q3

Siemens Gamesa, the wind turbine business of Siemens Energy AG (ETR:ENR), shrank its loss before special items to EUR 449 million (USD 490m) in the third fiscal quarter that ended on June 30 from EUR 2.55 billion a year ago, the German group’s results release showed today.

Siemens Energy said its wind unit that it is trying to restructure is developing in line with expectations.

Revenue grew by about 25% to EUR 2.57 billion, reflecting increased offshore revenue and a low base of comparison in onshore. Orders expectedly plummeted as onshore orders continued to be affected by a halt of sales activities for the 4.X and 5.X turbines. There were also no large orders in the offshore and service businesses this time. According to the company’s analyst presentation, the re-introduction of 4.X is on track, and there has been solid progress on 5.X.

In the full year, Siemens Gamesa is expected to record a loss before special items of up to EUR 2 billion, while the previous expectation was for around EUR 2 billion.

In the third quarter, Siemens Energy cut its net loss to EUR 102 million from EUR 2.93 billion a year ago. The company moved to a profit before special items of EUR 49 million from a EUR-2.05-billion loss in the prior-year quarter, which was hit by quality issues in Siemens Gamesa’s onshore business and increased product costs and ramp-up challenges in the offshore business.

Siemens Energy confirmed its full-year guidance with an improved cash outlook.

“The rapidly growing electricity market requires a wide range of our products. Especially our grid and gas turbine businesses are benefiting from this momentum. Importantly, with growing our order backlog, we have been able to improve its margin quality as well. Despite all the challenges, we are optimistic about the future and after the first nine months, we are well on track to meet our full-year guidance,” said president and CEO Christian Bruch.

(EUR 1 = USD 1.092)

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