Siemens Gamesa has revealed it has taken the first steps to achieve its long-term vision through a new company plan.
The program, called Mistral, will focus on identifying key levers to expand margins in the medium term.
These will include achieving a solid top line, establishing a competitive high-quality product portfolio, optimizing cash flow, and exploring transformational measures to unlock the company’s full potential in the long-term, including technology harmonization and a portfolio review.
The move followed a “complex second quarter” for the turbine manufacturer that continued to be marked by volatile market dynamics.
The company also faced challenges posed by the ramp-up of the Siemens Gamesa 5.X platform, which was more complex than initially envisaged, according to the board.
The company has already implemented a number of actions to urgently address the short-term headwinds and stabilize the business, and is already defining a plan to improve medium-term profitability and maximize its long-term potential, it said in its latest set of results.
Siemens Gamesa reported revenue of €2,177m (-7% y/y) in the three months to March 31.
EBIT pre PPA and before integration and restructuring costs stood at a loss of €304m, equivalent to an EBIT margin of -14%.
Reported net income attributable to SGRE equity-holders amounted to a loss of €377m between January and March.
In the first half of fiscal year 2022, revenue amounted to €4,006m (-13% y/y) and EBIT pre PPA and before integration and restructuring costs to a loss of €614m, with an EBIT margin of -15.3%. Reported net income attributable to SGRE equity-holders in first half amounted to a loss of €780m.
As of March 31, 2022, net debt totalled a loss of €1,731m.
Siemens Gamesa has €4,387m in committed funding lines, against which it has drawn €1,908m, and total liquidity amounts to €3,538m, including cash on the balance sheet at the end of Q2 FY22 (€1,058m).
Order intake in Q2 FY22 amounted to €1,198m, as a result of lengthier commercial negotiations in the Onshore market segment in the current inflationary environment and also the normal volatility of commercial activity in the Offshore market segment.
The order book stood at €32,831m as of March 31, 2022, reflecting projected growth for wind, reinforced by commitments reached at the COP26 and the need to achieve energy security.
Siemens Gamesa’s chief executive Jochen Eickholt (pictured) said: “The second quarter results reflect the current internal and external challenges we are facing.
“Since I joined the company as CEO on March 1, we have been working hard to identify the root causes of our underperformance.
“We are already implementing actions to address the short-term issues and stabilize the company in the shortest possible time, and we are already working on a plan to deliver our full potential.
“I remain confident of the company’s long-term vision and our essential role in tackling the climate emergency and assuring energy independence.”