Siemens Gamesa has confirmed its outlook for a potentially negative full-year profit margin in its published results for the first quarter of financial year 2022 (October 2021 to December 2021).
The turbine manufacturer confirmed a €309m loss in its fiscal first quarter due to ongoing supply chain challenges and new issues with its 5MW onshore platform, initially published in preliminary results that came out last month.
To address the challenges, Siemens Gamesa will continue implementing measures throughout the value chain to mitigate increases in logistics and supply chain costs and staff cost control initiatives to support profitability.
The company is also working on other initiatives such as the potential sale of its wind farm pipeline in southern Europe, which should have a positive impact on its results.
Siemens Gamesa has adjusted guidance for FY 2022 to: revenue growth between -9.0% and -2.0% y/y and an EBIT margin pre PPA and before I&R costs between -4.0% and 1.0% (previously revenue expected to decline by between -7% and -2%, and an EBIT margin pre PPA and I&R costs between +1% and +4%).
Despite the “complex near-term environment”, Siemens Gamesa is to maintain its long-term vision for the business, aiming for an EBIT margin pre PPA and I&R costs of +8% to +10%.
This vision is expected to be achieved between fiscal year 2024 and fiscal year 2025, supported by the recovery in profitability in the onshore market and by sustained profitable growth in the offshore and service markets, the company stated.
On 2 February Siemens Gamesa announced executive board member Jochen Eickholt will replace Andreas Nauen as chief executive.