Wind turbine maker Siemens Gamesa says revenue plummets
German-Spanish company Siemens Gamesa, which produces turbines for wind turbines for the second time in three months, lowered its annual profit forecast, as a result of which its shares fell 10%.
As the reason for downgrading the forecast, the company cited a one-off payment of 150 million euros associated with delays in the implementation of five onshore projects in Northern Europe due to adverse weather conditions.
Siemens Gamesa said it currently expects its profit before interest and taxes (EBIT) to be between 4.5% and 6%, up from a previous forecast of 5.5% to 7%.
Shares in wind turbine builders in Europe have plummeted in recent years as governments have begun to move away from policies of generous guarantees and fixed electricity tariffs and towards competitive auctions.
Siemens Gamesa had to cut profit forecasts in November after rising prices for steel and turbine components. The company originally projected an EBIT margin of 8-10% for 2020.
The downgrade should have a limited impact on the company's bottom line, but uncertainty remains high, according to a note to clients of brokerage company Sabadell.
In the three months to December, the firm reported a net loss of € 174 million, compared to € 18 million in net income in the same period a year earlier.