Siemens Gamesa recorded earnings before interest and tax of €178m for its fiscal year 2019 second quarter, down 6% on the year-ago period.
The figure, which is before integration and restructuring costs are taken into account, resulted in an EBIT margin of 7.5%, down 1% on the corresponding period.
Siemens Gamesa said the outcome was reached “against a background of declining prices in the order book”.
These were partly offset by improvements in productivity, synergies and fixed costs as a result of the ongoing L3AD2020 transformation program as well as higher volume of activity in its offshore and service units, the manufacturer said.
The latter led to revenue for the quarter of €2.4bn, up 7% year-on-year. Net income was €49m, up 40%, while net debt stood at €118m at 31 March.
Siemens Gamesa said the results are in line with previous guidance, “considering that onshore activity is back-end loaded, concentrated in the fourth quarter”.
The order backlog at the end of the quarter stood at €23.6bn, up 7% year-on-year, with order intake for the hitting €2.5bn for the three months to end-March driven by the service division, which notched an 11% uptick in new business.
Meanwhile, Siemens Gamesa has become the first wind turbine maker to attain an investment grade rating.
The company has obtained a BBB- long-term credit rating, with positive outlook, from Standard & Poor’s (S&P), and a Baa3 outlook stable rating from Moody’s.
S&P highlighted Siemens Gamesa’s leading position in the onshore and offshore wind markets with an improved scale, installed base and technology, which should help the group to increase market share and lead market consolidation.
The rating agency also underlined the company’s conservative financial management and transparent financial policy, with a strong balance sheet.
Moody’s also said that the rating is primarily supported by Siemens Gamesa’s leading market position, its high revenue visibility, as evidenced in the order book.
The rating agency also noted the manufacturer’s technological competitive advantage, as well as its growing service activities, good regional diversification and moderate financial leverage.
Siemens Gamesa chief financial officer David Mesonero said: “This is a significant milestone for Siemens Gamesa and a recognition of our achievements.
“The ratings confirm our financial and industrial strength and will enable us to continue diversifying and optimising our funding sources.”