Siemens Gamesa doubles net income in the first nine months of FY 2019

Siemens Gamesa

Siemens Gamesa doubled net income during the first nine months of the 2019 fiscal year, standing at €88 million.

The news after the wind turbine manufacturer published its results for the first nine months (October-June) and the third quarter (April-June) of fiscal year 2019.

Revenue growth

The revenue increased to €7,823 billion in this period, up by 12% compared with the previous fiscal year.

Additionally, it also grew by 23% to €2,632 during the third quarter. The rise is attributed to a strong contribution from all business units, especially the record activity in the offshore sector.

However, the EBIT margin stood at 6.1%, below the 6.7% forecasts. The company warned that sales volume and margins would continue to deal with pressure in the near future.

Siemens Gamesa’s EBIT pre-PPA and integration and restructuring stood at €475 million by the end of the fiscal year.

In the third quarter, the EBIT pre-PPA and integration and restructuring amounted to €159 million.

The main impact on profitability was persisting lower pricing in the order backlog during the period, the company said; added to 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

Siemens Gamesa doubled its net income to €88 million in the first nine months of fiscal year 2019, with €21 million in the third quarter.

Net debt stood at €191 million on June 30, driven by the increase of working capital stemming from peak wind turbine activity in the fourth quarter.

Sound commercial activity

Commercial activity remained strong throughout the period, mainly due to the contribution of all business units, especially orders from emerging offshore markets like Taiwan.

Thus, the company reached a record and well-balanced order backlog of €25.1 billion (+8%), boosted by the €4,700 billion obtained between April and June, the highest single-quarter order intake recorded so far.

Meanwhile, the order intake grew to €12.3 billion (+2.2%) over the past twelvemonth, with that 98% of the mid-point of the revenue guidance covered by this point of FY 2019.

A complex industry environment

The trade tariffs imposed between the United States and China, the UK’s exit from the European Union, the deceleration of the global economy, and the volatility of emerging markets, among other factors, constitute threats to the business, the company acknowledged.

Despite the complex environment in the sector, long-term prospects remain positive, it adds.

According to the International Energy Agency, average annual wind turbine installations will practically double by 2040.

Siemens Gamesa assured it is well-positioned to benefit from this rise “given its leadership in offshore and strong position in onshore emerging markets.”

For more information, check Energía16

See also: Siemens Gamesa to supply turbines for nearshore project in Vietnam

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