By Joshua Kirby

 

Siemens Gamesa Renewable Energy SA said late Wednesday that it now expects a negative operating margin for the full fiscal year, as higher provisions led to an operating loss in the third quarter.

The Spanish renewables company, a subsidiary of Germany's Siemens Energy AG, said it made an adjusted loss before interest and taxes of 150 million euros ($177.6 million) in the three months to end-June compared with EUR161 million in the same period the previous year. Revenue came to EUR2.7 billion from EUR2.4 billion previously.

In the preceding quarter, Siemens Gamesa made adjusted earnings before interest and taxes of EUR111 million.

Reassessment of profitability given higher raw-material prices and costs relating to the 5.X onshore turbine platform, especially in Brazil, resulted in provisions of some EUR229 million in the period, Siemens Gamesa said.

In light of the results, the company updated its guidance for the full fiscal year. Siemens Gamesa now expects an EBIT margin between negative 1% and 0% for 2021, having previously guided for a margin of 3%-5%. The company also expects revenue to be at the lower end of the guided range of EUR10.2 billion-EUR10.5 billion which it had already lowered in April from a range of EUR10.2 billion-EUR11.2 billion.

The company said it will work to boost profitability through cost-cutting and efficiency measures, especially relating to the 5.X platform.

 

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

 

(END) Dow Jones Newswires

July 15, 2021 01:41 ET (05:41 GMT)

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