Siemens Gamesa has reported a net loss of €466m for the last three months, compared to a gain of €21m in the same period last year.
The German-Spanish manufacturer said Covid-19 was responsible for €93m of the red ink during its fiscal third quarter while performance was also impacted by market slowdowns in India and Mexico and by onshore project challenges in Northern Europe.
Revenues for the period hit €2.4bn, down 7% year-on-year, while there were also losses of €161m on EBIT pre PPA and integration and restructuring, in comparison to the profit of €159m in the segment in 2019.
To regain profitability, the company said measures are underway including a change of course in India to tailor the business to actual market demand.
Siemens Gamesa is also working on optimisation of its global industrial footprint and implementation of an acceleration program, dubbed LEAP, that seeks to assure profitability for the three business units. The latter will be unveiled at the Capital Markets Day, scheduled for 27 August.
In his first earnings report as chief executive, Andreas Nauen said: “We are navigating a complicated period, as an industry and as a company, and the numbers we have presented today reflect that.
“Nevertheless, we are already taking measures to turn the onshore business around and return to profitability. The long-term outlook for our business is promising and our company has the technology and people needed to play a major role in developing a recovery underpinned by clean energies that help combat the effects of climate change.”
Bright notes included order intake increasing by 14% year on year in the quarter to €5.3bn. In offshore the company signed deals totalling 2860MW, up 87% on the same period in 2019.
Siemens Gamesa has meanwhile committed to new full-year guidance, expecting to end the year with revenues between €9.5bn and €10bn and an EBIT margin before PPA and integration and restructuring costs of between -3% and -1%.
“This represents a reduction of €1 billion in revenues and of between €200m and €250m in profitability compared to the previous guidance,” added the company.