Fiscal Year 2019 October-March results

(WK-intern) – Siemens Gamesa increased net income in the first half to €67 million, with a record order backlog of €23.6 billion

• Revenue increased by 6% YoY in the first half, to €4,651 million, the EBIT margin pre-PPA and integration and restructuring costs stood at 6.8%, and net profit increased from €0 million in the same period last year to €67 million this year
• In the second quarter, revenue increased by 7%, to €2,389 million, the EBIT margin pre-PPA and integration and restructuring costs amounted to 7.5%, and net income rose 40% YoY to €49 million
• Solid commercial activity enabled the company to fully cover the low end of the FY 2019 revenue guidance range (€10,000-€11,000 million)
• The company has logged orders worth €10.9 billion in the last twelve months (+8% YoY), driven by strong performance in all segments

Siemens Gamesa Renewable Energy (SGRE) today reported the results of the first half (October-March) and the second quarter (January-March) of fiscal year (FY) 2019.

Revenue increased by 6% year-on-year in the first half of FY 2019, to €4,651 million and by 7% in the second quarter, to €2,389 million, supported by strong performance in Offshore and Service.

The company ended the first half of FY 2019 with EBIT pre-PPA and integration and restructuring costs of €316 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 6.8%. In the second quarter, EBIT pre-PPA and integration and restructuring costs amounted to €178 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 7.5%. This result was reached against a background of declining prices in the order book, partly offset by improvements in productivity, synergies and fixed costs as a result of the L3AD2020 transformation program and the higher volume of activity in Offshore and Service.

Performance was in line with the guidance presented for FY 2019 (revenues of €10,000-€11,000 million and EBIT margin pre-PPA and integration and restructuring costs of 7%-8.5%), considering that Onshore activity is back-end loaded, concentrated in the fourth quarter.

Net income amounted to €67 million in the first half, from €0 million in the same period last year, and to €49 million in the second quarter, an increase of 40% YoY. Net debt amounted to €118 million at 31 March.

Siemens Gamesa has become the first wind turbine manufacturer to attain an investment grade rating. The company obtained a BBB- long-term credit rating, with positive outlook, from Standard & Poor’s (S&P), and a Baa3 outlook stable rating from Moody’s. Siemens Gamesa has debuted in the public rating arena within investment grade.
Sound commercial activity
Commercial activity remained strong during the period, with a record order backlog of €23.6 billion (+7% YoY), fully covering the low end of the FY 2019 revenue guidance range, providing enhanced visibility for following years.

Order intake amounted to €2.5 billion in the second quarter of FY 2019, driven by Service, where order intake increased by 11% year-on-year. In the last twelve months, order intake amounted to €10.9 billion (+8% YoY), supported by strong performance in all segments.

During the quarter, Siemens Gamesa continued to reinforce its technological leadership. After presenting a 10 MW offshore wind turbine, the SG 10.0-193 DD, the company has unveiled a new platform with the SG 5.8-155 and SG 5.8-170 wind turbine models, including the largest Onshore rotor in the market. This platform is a combination of proven and next-generation technologies, with a highly flexible design which makes it suitable for a broad range of sites. Production of the SG 5.8-155 model is scheduled to commence in Q4 2020, while the SG 5.8-170 will start in Q1 2021.

About Siemens Gamesa Renewable Energy
Siemens Gamesa is a global leader in the wind power industry, with a strong presence in all facets of the wind business: offshore, onshore and services. Through its advanced digital capabilities, the company offers one of the broadest product portfolios in the industry as well as industry-leading service solutions, helping to make clean energy more affordable and reliable. With more than 90 GW installed worldwide, Siemens Gamesa manufactures, installs and maintains wind turbines in the onshore and offshore segments. Its order backlog stands at €23.6 billion. The company is headquartered in Spain and listed on the Spanish stock exchange (traded in the Ibex-35 index).

PR: Siemens Gamesa Renewable Energy

PB: Siemens Gamesa 5X