Siemens Gamesa posts EUR-70m profit for FY 2018, meets fin guidance

Siemens Gamesa Renewable Energy SA (BME:SGRE) said today it has met its financial guidance for the fiscal year through September 2018, booking a net profit of EUR 70 million (USD 80m) and a strong order intake.

The company, which was created in April 2017 through the merger of Siemens Wind Power with Gamesa Corporacioon Tecnoloogica, did not provide a comparable figure for net profit in the prior fiscal year. It noted that its bottom line includes the impact of integration and restructuring costs amounting to EUR 176 million.

During the 12-month period, Siemens Gamesa generated revenues of EUR 9.12 billion. While this represents a 17% year-on-year drop, the figure was within the forecast range of EUR 9 billion-9.6 billion.

Earnings before interest and tax (EBIT) pre-PPA, integration and restructuring costs went down 11% to EUR 693 million. The EBIT margin, though, improved by 0.5 percentage points to 7.6% and fell within the middle of the guided range of 7%-8%. The company pointed out that its EBIT margin was impacted by a double-digit price decrease in the onshore wind turbine business that was partially compensated by synergies and productivity as well as strong performance in the Service segment.

For fiscal 2018/19, Siemens Gamesa forecasts revenues of EUR 10 billion-11 billion and an EBIT margin of 7%-8.5%.

In fiscal 2017/18, the company recorded a 9% rise in order intake to EUR 11.87 billion, mainly thanks to a recovery in the onshore segment -- up 30% to EUR 6.68 billion. Order intake in Offshore was EUR 2.795 billion. Within Service, it signed contracts worth EUR 2.395 billion.

In volume terms, the company signed a total of 9 GW across all segments, which is 42% more than in the prior fiscal year. It commented that the reactivation of markets such as Brazil, Spain, India and South Africa contributed significantly to the order intake recovery.

The company achieved a new record backlog of EUR 22.8 billion, up 10% on the year, thus reaching revenue coverage of 80% for the next fiscal year.

The table below includes Siemens Gamesa’s results for the fourth quarter of fiscal 2017/18.

(EUR 1.0 = USD 1.142)

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