Siemens Gamesa earnings up in Q2, but onshore still struggling

Siemens Gamesa recorded increases in revenue and earnings in the second quarter of its financial year, mainly due to solid performances in its offshore and services segments.

Its revenue increased 6% year on year to €2.3 billion, while its Ebit before purchase price allocation (PPA) and integration and restructuring costs more than tripled to €111 million.

The company reported an Ebit margin of 4.8% for the January-March quarter.

Ebit with PPA and integration and restructuring costs factored back in was -€19 million, though this was up from -€118 million one year earlier.

Meanwhile, it logged €5.5 billion worth of orders in the quarter, meaning its order book was worth €33.7 billion at the end of March – up 18% from the same period last year.

Siemens Gamesa attributed these developments to solid performances in its offshore and services business units, but added that its onshore segment continues to be the major focus of turnaround efforts during the quarter.

CEO Andreas Nauen said the company still faces challenging conditions in some markets due to disruption caused by the coronavirus pandemic and the rising price of raw materials. However, he added that he was “encouraged” by the company’s Q2 results.

Siemens Gamesa maintains full-year Ebit margin guidance at 3-5%, but narrowed its range of expected revenue from €10.2-11.2 billion to €10.2-10.5 billion. This was due to project deferrals and execution delays expected to hit sales in the second half of the year, the company explained. 

The ongoing impact of the coronavirus pandemic will also continue to hit sales in the rest of its financial year (1 October to 30 September), especially in India and Brazil, Siemens Gamesa believes.