Siemens Gamesa's EBIT down by 67% in fiscal Q3

The SWT-3.15-142 wind turbine. Image by Siemens (www.siemens.com/press)

Earnings before interest and tax (EBIT) at Siemens Gamesa Renewable Energy SA (BME:SGRE) fell to EUR 45 million (USD 53m) in the quarter through June 2017 from EUR 137 million a year earlier.

Today Siemens (ETR:SIE) reported results for the third quarter of its fiscal 2016/17, including amortisation, depreciation and impairments of EUR 190 million for Siemens Gamesa, which marks a significant increase from EUR 34 million a year ago.

Gamesa of Spain and Siemens Wind Power officially merged in early April, which brought EUR 36 million in integration costs for the reporting quarter, weighing on profit margins.

Results for the merged company are in the table.

Results in EUR million	April-June 2017	April-June 2016
EBIT	45	137
EBITDA	235	171
Profit	164	143
Profit margin (in %)	6.1	8.3
Revenue	2,693	1,722
Orders	1,398	2,729
Free cash flow	(650)	(192)

Revenues grew thanks to the merger and strong offshore and service revenues, but Siemens Gamesa witnessed a sharp drop in order intake as a result of India’s move to tenders for onshore wind capacity, which temporarily affected equipment sales, and volatility in the offshore wind business where large orders now depend on tenders.

Meanwhile, Siemens's consolidated net profit grew by 7% to EUR 1.5 billion as revenue inched up by 8% year-on-year to EUR 21.4 billion. Orders were down 6% to EUR 19.8 billion.

(EUR 1 = USD 1.18)

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