Siemens Gamesa, the renowned turbine maker, has reported a loss of €386m in its second quarter financial results for 2023. This marks a significant increase from the deficit of €322m recorded in the same period the previous year.
The company's loss, before special items (SI), amounted to €374m in Q2 2023, compared to €301m in Q2 2022. The negative financial results were primarily attributed to various factors, including the persistent impact of inflation, challenges in the supply chain, the ongoing offshore activities, and the burden of onerous projects.
Despite the financial setbacks, Siemens Gamesa did experience growth in revenue, with €2.4bn generated in Q2 2023, compared to €2.2bn in Q2 2022. The recent quarter's revenue was bolstered by one-off effects from non-recurring business activities, contributing a substantial amount in the higher two-digit euro million range.
The company also witnessed a notable increase in orders, reflecting a robust quarter compared to the relatively low levels of the previous year. The surge in orders was primarily driven by significant volume from large orders, including a notable €1.7bn offshore order in the UK.
Siemens Gamesa acknowledged the volatile nature of the current situation but expressed optimism for improvement in the second half of the fiscal year. However, the projected upturn is not expected to fully compensate for the weak performance in the first half.
To address operational issues and facilitate a turnaround, Siemens Gamesa remains committed to the meticulous execution of the Mistral program. Additionally, the timely ramp-up of offshore activities will play a crucial role in the company's performance throughout fiscal year 2023.
Looking ahead, Siemens Gamesa has set a target of achieving a revenue growth of 6% to 10% in fiscal year 2023, while anticipating a negative profit margin before special items of around 11%. These goals reflect the company's determination to navigate the challenging landscape and regain its financial stability.
