Siemens Gamesa booked a total net loss of €165m in its fiscal second quarter, down over 400% on the €49m profit in the same period last year.
The company cited a €56m hit on profitability related to the COVID-19 pandemic, equivalent to 2.5% of revenues, as the chief reason for the performance in the period January to March.
The public health emergency further complicated existing challenges in its onshore business such as the execution of projects in Northern Europe and the slowdown in India, the German-Spanish manufacturer said.
Revenue was 8% lower at €2.2bn while reported EBIT after purchase price allocation and integration and restructuring costs came in at a loss of €118m, down from a €90m return in 2019.
Siemens Gamesa said it has taken measures to deal with the pandemic, including re-routing certain supply chains, optimising remote monitoring to guarantee service operations and extending periods for maintenance teams working at sea.
However, chief executive Markus Tacke (pictured) said the pandemic is a “situation without precedent that has changed our lives in just weeks”.
Order intake for the three months amounted to €2.2bn, 11% down year on year, which the company said reflected “normal” volatility in offshore and the pandemic impact on signing of onshore contracts, some of which have been deferred into later quarters.
The company, which withdrew guidance for the year recently, nevertheless said the long-term prospects for the industry and Siemens Gamesa remain sound.
The manufacturer has built a record order backlog of €28.6bn and is “well positioned to take advantage of sector growth outlook thanks to its geographical diversification and leadership in technology”.
Tacke meanwhile called for a green focus for the recovery.
“Siemens Gamesa considers that the renewables industry must play a key role in the economic recovery to move towards a sustainable energy model that generates quality jobs. It is in our hands to avoid another crisis: the climate crisis,” he said.