|Fiscal Year 2019 October-June results
Siemens Gamesa doubled net income to €88 million in the first nine months, with sound commercial activity driving the backlog to more than €25 billion
Siemens Gamesa Renewable Energy (SGRE) today reported the results of the first nine months (October-June) and the third quarter (April-June) of fiscal year (FY) 2019.
Revenue increased by 12% year-on-year in the first nine months of FY 2019, to €7,283 million, and by 23% year-on-year in the third quarter, to €2,632 million, driven by strong performance in all businesses, with record activity in offshore.
The company ended the first nine months of FY 2019 with EBIT pre-PPA and integration and restructuring costs of €475 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 6.5%. In the third quarter, EBIT pre-PPA and integration and restructuring costs amounted to €159 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 6.1%. The main impact on profitability was persisting lower pricing in the order backlog during the period, emerging market volatility and execution challenges in some onshore projects, partly offset by synergies, improvements in productivity and higher year-on-year sales volume.
The company doubled net income to €88 million in the first nine months of FY 2019, while net income in the third quarter was €21 million. Net debt amounted to €191 million at 30 June, driven by the increase in working capital ahead of peak wind turbine activity in the fourth quarter.
Performance is in line with the guidance range for FY 2019 (revenues of €10,000-€11,000 million and EBIT margin pre-PPA and integration and restructuring costs of 7-8.5%), despite the third quarter being affected by emerging market volatility and execution challenges in some onshore projects. Although short-term headwinds temporarily hamper group margins, Siemens Gamesa’s long-term prospects remain solid thanks to a record backlog, geographical and business diversification and one of the most competitive product portfolios, both onshore and offshore.
The company will update on its competitive business strategy and performance in a Capital Markets Day during the first half of 2020.
Strong commercial activity
Despite this complex short-term industry environment, long-term prospects remain positive, with average annual wind installations set to roughly double through 2040, according to the International Energy Agency. Siemens Gamesa is well positioned to benefit from growth drivers due to its leadership in offshore and strong position in emerging onshore markets.
|About Siemens Gamesa Renewable Energy
Siemens Gamesa is a global leader in the wind power industry, with a strong presence in all facets of the wind business: offshore, onshore and services. Through its advanced digital capabilities, the company offers one of the broadest product portfolios in the industry as well as industry-leading service solutions, helping to make clean energy more affordable and reliable. With 95 GW installed worldwide, Siemens Gamesa manufactures, installs and maintains wind turbines in the onshore and offshore segments. Its order backlog stands at €25.1 billion. The company is headquartered in Spain and listed on the Spanish stock exchange (traded in the Ibex-35 index).
|Further information is available at: www.siemensgamesa.com
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