The wind power subsidiary Gemesa thwarts the plans of Siemens Energy again – it was not well received on the stock exchange.
(Photo: Reuters)
Munich The energy technology group Siemens Energy has to cut back on the forecasts due to ongoing problems at the Spanish wind power subsidiary Siemens Gamesa. In the first three months of the 2021/22 fiscal year (as of the end of September), Siemens Gamesa pulled the group into the red with an adjusted operating result (EBITA) before special items of 63 million euros, as Siemens Energy announced on Thursday evening. A year earlier, a profit of 366 million euros had been posted. On average, analysts had expected a reduced profit, but still clearly in the black.
This did not go down well on the stock market. On the Tradegate trading platform, the Siemens Energy share price fell by three percent in an initial reaction. Siemens Gamesa lost two and a half percent.
Siemens Gamesa recorded special charges of 289 million euros in the first quarter and blamed supply chain problems on the one hand and difficulties in ramping up its new 5.X platform for onshore wind turbines on the other. These were exacerbated by the supply bottlenecks. The operating loss was thus 309 million euros. The daughter – actually the great hope for the energy transition – has been the problem child of Siemens Energy for years. CEO Christian Bruch had replaced the management of Siemens Gamesa again and hoped for a turnaround in the new fiscal year.
Correction of the forecasts after only three months
But now Siemens Gamesa has to correct the forecasts for 2021/22 again after just three months and only expects an adjusted return on sales before special items of minus four to plus one percent. So far, Gamesa boss Andreas Nauen had expected up to plus four percent. Sales will drop by up to nine (previously: minus seven) percent.
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The parent company must also react to this. Siemens Energy is now calculating a drop in sales of up to two (previously: up to one) percent for 2021/22. In the best case, however, sales will increase by three percent as planned, because business with gas and steam power plants is going as planned. The adjusted operating return on sales should be between two and four percent before special effects; so far there has been talk of three to five percent. The board of directors now wants to check whether there will be an operating return of 6.5 to 8.5 percent as planned next year.
In the first quarter, the operating return on sales was minus 1.1 percent. While incoming orders rose surprisingly sharply by ten percent to 8.33 billion euros, Siemens Energy with sales of 5.96 billion euros from October to December not only missed the previous year’s figure by eleven percent, but also fell well short of the analysts’ estimates. The group also benefited from the fact that the operating results in the Gas & Power division were significantly better than expected. The traditional business got off to a “very solid start” in the financial year, the statement said.
More: Investors put pressure on Siemens Energy: “Full integration of Gamesa would be the best solution”
