Siemens Gamesa has acted fast to prevent new project delays: CEO
MADRID (Reuters) – Siemens Gamesa Chief Executive Marcus Tacke said on Tuesday the wind turbine maker had acted quickly to make sure the impact of project delays that dragged it to a loss at the beginning of the year would not happen again.
“We do not take this setback lightly,” Tacke said on a conference call with analysts, adding the company was also working to guard against challenges in a sector hit by falling margins as governments phase out subsidies.
“I remain confident that we have the right people and technology in place to help us through a bumpy period for the sector.”
Last week, the company formed in 2017 by a merger between Spain’s Gamesa and the wind business of Germany’s Siemens cut its profitability target for the financial year 2020 for a second time in three months.
It reported a net loss of 174 million euros ($192.34 million) in the three months to December, down from an 18 million euro net profit in the same period a year earlier, blaming project delays caused by the early onset of wintry weather in northern Europe.
Chief Financial Officer David Mesonero said the company’s profitability should start improving in the second quarter of the year, after a 6.8% reduction in its core earnings margin in the first quarter.
“We are nearly done with our less profitable onshore contracts and we see better margins in our order intake,” Mesonero said.
Reporting by Isla Binnie, Editing by Inti Landauro and Louise Heavens
Our Standards:The Thomson Reuters Trust Principles.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.