Siemens Gamesa reported a third-quarter loss before special items of €438 million, a slight improvement from the €446 million loss in the same period last year. The renewable energy firm cited ongoing cost pressures and quality issues as key factors behind the continued losses.
“Profit before special items was negative and nearly remained on prior-year quarter’s level due to the effects of cost increases related to the ongoing ramp-up of offshore activities as well as the quality issues in the onshore area,” the company said in a statement.
Revenue for the quarter declined marginally to €2.506 billion, as growth in offshore wind operations was not sufficient to offset a drop in the onshore business. While the new units business in the onshore segment showed moderate growth, this was counterbalanced by weaker sales activity overall.
Order intake rose significantly from a year earlier, buoyed by two major offshore orders valued at €1.8 billion and €1.5 billion for projects in the Baltic Sea. Siemens Gamesa also began commercial efforts for a new onshore turbine platform, the SG 7.0-170, which will succeed its 5.X series.
The company noted additional negative impacts from its annual update of statistical models for turbine evaluation, tariffs imposed by the United States, and temporary currency hedging effects.
Siemens Gamesa’s book-to-bill ratio for the quarter stood at 1.95, with the order backlog rising to €38 billion by the end of the period.
Parent company Siemens Energy reported a profit before special items of €497 million for its fiscal second quarter, up sharply from €49 million in the prior-year period. The company attributed the improvement to stronger operational performance and increased revenues in its new units business. It added that the solid quarterly results placed it near the upper end of its full-year earnings guidance.
