Shares in Siemens Gamesa shed a tenth of their value today after a warning on earnings from the world’s largest offshore wind turbine maker, which it pinned on supply chain delays and cost pressures.
The coronavirus pandemic has hit the Spanish-German wind engineering group hard, with its shares more than halving over the past 12 months. Its German parent Siemens Energy, which owns about two-thirds of the group, fell 13 per cent today.
Madrid-listed Siemens Gamesa said that supply chain bottlenecks, which are expected to last longer than previously anticipated, added pressure on its costs, especially in its wind turbine unit.
The “volatile market conditions” affected customers’ investment decisions, resulting in delays to some projects, it said in a statement yesterday outlining its preliminary first-quarter earnings report for fiscal year 2022.
The group, at the bottom end of its guidance, has forecast a potential loss for its 2022 fiscal year. Its profit margin is now expected to range between minus 4 per cent and plus 1 per cent, down from its previous forecast rise of between 1 per cent and 4 per cent.
Preliminary earnings for the first quarter of its financial year show sales of €1.8bn and a loss in earnings before interest, tax and extra costs, of €309m. Its total order backlog came to €33.6bn at the end of the quarter.
The group adjusted its guidance for the full year for sales to fall between 9 per cent and 2 per cent, compared with its previous forecast drop of 7 per cent to 2 per cent.
Source: Economy - ft.com
