It forecasts net losses of 4,500 million euros at the end of September
The German group Siemens Energy registered attributable net losses of 3,632 million euros in the first nine months of its fiscal year (between October and June), which means five times the 'red numbers' of 711 million euros that was recorded in the same period of the previous year, derived from start-up problems at Siemens Gamesa.
The company already warned at the end of June that it was revoking its profit forecast for fiscal year 2023, both for the group and for Siemens Gamesa due to "the substantial increase" in failures in wind turbine parts manufactured by Gamesa.
In this sense, the company has explained that the turbines can continue to work, but to guarantee long-term operation, the objective is to rectify problems within normal service intervals.
In this line, the German group has highlighted that the expected costs with charges for future expenses amount to 2,200 million euros, which include 1,600 million euros related to the quality problems of some terrestrial platforms, while most of the Estimated repair costs are expected for the years 2024 and 2025.
In the first nine months of its fiscal year, the company registered a volume of orders of 39,869 million euros, 52.9% more, while revenues totaled 22,598 million, 14% more than a year earlier.
Specifically, the billing of Siemens gas services was 8,121 million euros, 21.3% more than a year ago, when they stood at 6,694 million euros, while the network technology area billed 5,160 million euros, 20.1% more.
For its part, the industrial transformation division of Siemens saw its revenue grow by 14%, to 3,223 million euros, while Siemens Gamesa scored 6,500 million euros, 12% more.
QUARTERLY LOSSES OF 2,955 MILLION
In its third fiscal quarter, located between April and June, Siemens Energy registered attributable net losses of 2,955 million euros, which means multiplying by seven (603.6%) those obtained in the same period of the previous year, when they stood at 420 million euros.
Likewise, the company entered 7,506 million euros, 3.1% more than the 7,280 million euros registered in its third fiscal quarter of 2022, highlighting the turnover of Siemens Gamesa, which decreased by 15.7%, to 2,054 million of euros.
FORECASTS FOR THE END OF THE FISCAL YEAR WORSE
The company has assessed new forecasts for the current fiscal year, which ends on September 30, and has worsened the figure for net losses that it expects for this year, to close to 4,500 million euros.
Likewise, Siemens Energy foresees a growth in comparable revenues of 9% to 11%, which previously placed between 10% and 12%, while it has estimated a profit margin before special items between negative -10% and -8%, previously around the lower end of the 1% to 3% guidance range.
For its part, after the start of the trading day, the shares of Siemens Energy shot up more than 4%, to 16.19 euros per share.