Siemens Gamesa Q2 Loss Widens

Siemens Gamesa Renewable Energy SA (GCTAF.PK), a Spanish-German wind engineering firm, on Thursday reported a wider loss for the second quarter, amidst supply chain disruptions and ramp-up challenges in the Siemens Gamesa 5.X platform, which was more complex than initially envisaged.

The Siemens Gamesa 5.X platform encompasses two turbine models, the SG 5.8-155 and the SG 5.8-170.

For the second quarter ended in March, the company reported a net loss of 377 million euros, compared with 66 million euros loss last year.

The Hamburg-headquartered company registered a loss before interest and taxes of 385 million euros as against 19 million euros, on year-on-year basis.

Siemens Gamesa posted a loss before interest and taxes pre PPA and before integration and restructuring costs at 304 million euros, higher than 111 million euros of previous year.

The Group generated a revenue of 2.177 billion euros, compared with 2.336 billion euros reported for the second quarter of 2021.

Looking ahead, for now, the company said it will continue to work to reach a revenue growth of between -9 percent and -2 percent with respect to the previous fiscal, and profit at the lower end of the previous guidance range, with an EBIT margin pre PPA and before integration and restructuring costs of -4 percent.

Jochen Eickholt, Siemens Gamesa's CEO said: "The second quarter results reflect the current internal and external challenges we are facing. We are already implementing actions to address the short-term issues and stabilize the company in the shortest possible time, and we are already working on a plan to deliver our full potential…"

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