Siemens Gamesa: posts quarterly loss on project charges
(CercleFinance.com) - Siemens Gamesa on Tuesday posted a quarterly loss, due to the extraordinary costs of five onshore projects in Northern Europe.
The Spanish-based wind turbine maker said it made a net loss of 174 million euros in the three months from October 2019 to December 2019, compared to a net profit of 18 million euros a year earlier.
The company said it was impacted by an unforeseen 150 million euro charge on five onshore projects in northern Europe, and mainly Norway.
The issues were caused by adverse road conditions and the unusual early arrival of winter weather, which delayed project execution substantially, the group said.
"This was not an easy quarter for Siemens Gamesa," said CEO Markus Tacke. "The company's financial performance fell short of the expectations we had when we set our targets for the year," he added.
On a brighter note, the industrial group posted an 82% increase in order intake, with firm orders rising to over 4.6 billion euros, raising the order book to a new record.
This announcement seemed to enable the shares to stave off their fall on the Madrid Stock Exchange on Tuesday morning, with the stock down just 0.8%. The share has risen by over 18% over the past year.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The Spanish-based wind turbine maker said it made a net loss of 174 million euros in the three months from October 2019 to December 2019, compared to a net profit of 18 million euros a year earlier.
The company said it was impacted by an unforeseen 150 million euro charge on five onshore projects in northern Europe, and mainly Norway.
The issues were caused by adverse road conditions and the unusual early arrival of winter weather, which delayed project execution substantially, the group said.
"This was not an easy quarter for Siemens Gamesa," said CEO Markus Tacke. "The company's financial performance fell short of the expectations we had when we set our targets for the year," he added.
On a brighter note, the industrial group posted an 82% increase in order intake, with firm orders rising to over 4.6 billion euros, raising the order book to a new record.
This announcement seemed to enable the shares to stave off their fall on the Madrid Stock Exchange on Tuesday morning, with the stock down just 0.8%. The share has risen by over 18% over the past year.
Copyright (c) 2020 CercleFinance.com. All rights reserved.