COVID-19 impacts Siemens Gamesa in Q3, but record backlog and strong financial position provide a sound basis for the future

Siemens Gamesa’s performance in the third quarter of FY 2020 (April-June) reflected the impact of COVID-19 on its operations as well as challenges in the Onshore business, due to the slowdown of the Indian and Mexican markets, and in the execution of projects in Northern Europe.

As a result, between April and June Siemens Gamesa recorded revenues of €2,411 million, a decline of 8% year-on-year. EBIT pre PPA and before integration and restructuring (I&R) costs fell to -€161 million, with a negative EBIT margin of -6.7%, including a -€93 million direct impact of COVID-19. Net losses in the quarter amounted to €466 million.

Revenues in the first nine months of FY 2020 fell 9% year-on-year to €6,615 million, with EBIT pre PPA and before I&R costs of -€264 million, including an accumulated impact of the pandemic of -€149 million. Net losses amounted to €805 million in the period.

In his first earnings report as CEO, 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.”

Nauen was appointed CEO of Siemens Gamesa in June 2020 and tasked with driving a turnaround at the company. To regain profitability, the company has measures underway that include a change of course in India to tailor the business to actual market demand, optimisation of the global industrial footprint, and implementation of an acceleration program (LEAP) that seeks to assure profitability for the three business units. The program will be unveiled at the Capital Markets Day, scheduled for 27 August.

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