October 16 (Renewables Now) - Siemens Gamesa Renewable Energy SA (BME:SGRE) on Friday revised down its EBIT forecast for the fiscal year to the end of September as a result of write-down of inventories for the US and South African markets.
The wind turbine manufacturer expects underlying earnings before interest and tax (EBIT), pre-purchase price allocation, to be about EUR 790 million (USD 933m), compared to the EUR 900 million it forecast when reporting third-quarter results in July. The guidance for pro-forma EBIT margin was reduced to about 7% from at least 8%.
Siemens Gamesa, which is to announce fourth-quarter results on November 6, said the inventory write-downs reflect current market conditions and pricing pressure. It added it continues to make progress with its integration and the achievement of the promised synergies of at least EUR 230 million annually.
The company did not mention its 12-month revenue forecast, which at the third quarter called for EUR 11 billion-11.2 billion.
(EUR 1 = USD 1.180)