The German-Spanish turbine manufacturer is deep in crisis.
(Photo: Siemens Gamesa)
Dusseldorf, Munich After a loss of almost one billion euros, the new Siemens Gamesa boss Jochen Eickholt does not see any drastic improvement in the Spanish wind turbine manufacturer in the current 2022/23 fiscal year.
Persistently high inflation and fragile supply chains are driving up material costs, the subsidiary of the energy technology group Siemens Energy said on Thursday. “Nevertheless, we expect the market environment to normalize after this transitional year,” the statement said. Then Siemens Gamesa could become profitable again and gradually improve the inflow of funds (cash flow).
In the past fiscal year, Siemens Gamesa’s sales fell by four percent to 9.8 billion euros, although the order backlog rose by a further 2.5 billion to more than 35 billion euros. In the fourth quarter alone, orders came in for 4.4 billion euros, half more than a year earlier.
Gamesa boss wants to check project portfolio
But many orders are proving to be loss-making for Siemens Gamesa: Adjusted operating earnings (EBIT) totaled 581 million euros in the fiscal year, and the net loss rose again to 940 (previous year: 627) million euros. CEO Jochen Eickholt, who took over as reorganizer, said that the portfolio of projects had to be reviewed in view of the changed environment and cost increases.
Top jobs of the day
Find the best jobs now and
be notified by email.
There were signs of improvement in the fourth quarter: sales rose by 18 percent to 3.37 billion euros, EBIT was clearly positive at 375 million euros, and the bottom line was that Siemens Gamesa was in the black at 286 million euros.
However, Eickholt does not anticipate sustainable progress until 2025. Until then, Siemens Gamesa will be prepared for further market turmoil based on a streamlined platform strategy and a scalable model for wind turbines on land, at sea and for the maintenance business, as well as a uniform procurement strategy. Eickholt had announced that 2,900 jobs would be cut. The full integration into Siemens Energy should also bring synergies.
More: Again too few bidders: Wind power expansion in Germany is making little progress
