The direct impact of the coronavirus on the profitability of the wind turbine manufacturer amounts to 93 million euros. The quarterly performance also reflects the slowdown in the Indian and Mexican markets and problems in the execution of onshore wind projects in northern Europe.
The strength of the offshore wind energy and services business units drive the order book to € 31.5 billion, increasing long-term visibility.
Siemens Gamesa deploys measures to change the direction of its onshore business and move towards profitability. The company expects to end the year with sales in the range of 9,500-10,000 million euros, with an Ebit margin of between -3% and -1%.
Siemens Gamesa underlined its leadership in Offshore with a strong quarter in which it signed 2,860 MW in orders (+87% y/y),taking the total for the last 12 months to 4,211 MW (+110% y/y). Overall, the company has an Offshore backlog totalling 7.6 GW, as well as a pipeline ofconditional orders and preferred supplier agreements amounting to 9.3 GW.The Onshore business was severely affected by the uncertainty created by the pandemicas there were delays in signing contracts in all three regions, and other challenges such as the slowdown in India and Mexicoandinthe execution of projects in Northern Europe. Onshore signed 1,200 MW of orders in the quarter, 70% of which for turbines over 4 MW.Commercial performance in Service was particularly noteworthy. Order intake in the quarter totalled €1,115 million, 20% more than the year-ago quarter, linked to the Offshore business, and with contract duration averaging 9 years. The order book amounts to€15.1 billion, 48% of the company’s total backlog.New guidance for FY 2020Siemens Gamesa withdrew its financial guidance for FY 20 in April because of the uncertainty about the impact of the COVID-19 crisis. Now, with better visibility, the company has presented new estimates for FY 2020, which ends on 30 September, including theimpact of the Senvion asset acquisition. Siemens Gamesa expects to end the year with revenues between €9.5 and €10 billion and an EBIT margin before PPA and integration and restructuring costs of between-3% and -1%. This represents a reduction of €1 billion in revenues and of between €200 and €250 million in profitability compared to the previous guidance.