Materials and product launch woes beat Siemens Gamesa forecast
- Shares fall after company warns of possible loss
- Second profit warning this year
- Company cites higher costs and delays related to COVID
MADRID, July 15 (Reuters) – Shares of Siemens Gamesa (SGREN.MC) fell 17% on Thursday after the wind turbine maker warned of a possible loss due to the sharp rise in commodity prices and product ramp-up costs.
Parent company Siemens Energy (ENR1n.DE) on Wednesday removed its own margin target to account for the second profit warning from the turbine business in less than three months. Read more
Siemens Energy stock was down 8.5% at 0805 GMT, while the turbine division rallied slightly to 13% lower at 0805 GMT.
Siemens Gamesa is the world’s largest manufacturer of offshore wind turbines which are essential to the plans made by some of the world’s largest economies to reduce carbon emissions.
He tried to turn around a less profitable onshore division and has already lowered its profit ambitions once this year, citing material costs and execution delays that have been exacerbated by the coronavirus pandemic.
The company is grappling with higher ramp-up costs for its 5.X onshore wind platform, particularly in Brazil, where it has complained of supply chain gaps and bottlenecks. logistical strangulation.
Managing Director Andreas Nauen said he remains optimistic the company could achieve a profit margin of 8-10%, but the timeline could be extended from 2023 to 2024.
“We would like to get back to you once we have done our homework,” he told analysts on a conference call.
In recent months, the company has worked to pass the rising costs of materials such as steel on to its customers, Nauen said.
“Of course (the clients) don’t discuss it with pleasure, that’s clearâ¦ it’s also clear that given the scale of the increases, it can’t stay with us,” he said. declared.
Siemens Gamesa has now lost nearly a third of its market value so far this year, extending losses that began in January with a sectoral decline in renewable energy inventories after a dizzying spike accumulated after a first pandemic crisis in 2020.
Siemens Energy was split from Siemens AG (SIEGn.DE) and listed last year.
Reporting by Isla Binnie Editing by Jason Neely, David Goodman, Philippa Fletcher
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