HUTCHINSON, Kan. — A strong presence offshore and some improvement in its onshore platform did
not keep Siemens/Gamesa from reporting sluggish earnings results for the six months from April to September.
Between April and September, revenues fell 12.3 percent while underlying earnings before interest and taxes came to $222 million. These results were impacted by specific onshore market conditions, including the temporary suspension of the Indian market, and impairments relating to accounting adjustments to inventories. Excluding these impacts, revenues fell just 2 percent.
But there is also good news for the recently merged company in that commercial activity intensified in the fourth quarter, both onshore and offshore, resulting in a significant increase in order intake, amounting to 3 GW. This volume reflects the improvement of Siemens/Gamesa’s competitive position with the best quarterly onshore order intake since the beginning of 2015, which reached 2.2 GW.
Between April and September, revenue from the sale of wind turbines decreased by 15 percent to $5.1 billion, impacted by onshore markets that are facing challenging conditions, mainly India and the UK, as well as pricing pressure. Sales in services rose 9 percent to $721 million and maintenance contracts continue to grow to cover 55,000 MW around the world, an increase of 12.4 percent. Even with those numbers, the company continues to trim its workforce and says it will continue to evaluate. That included 140 jobs lost at the Hutchinson plant in September.
The company will present a new Strategic Plan next February in the context of its Capital Markets Day. The company will give details of financial targets, dividend policy and management incentive scheme.