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Siemens Gamesa Reports Revenues of €2,127 million in line with the guidance for the year

Zamudio, Spain - Siemens Gamesa Renewable Energy released its results for the first quarter of fiscal 2018 (October-December). According to the company financial performance was in line with the guidance for the year (revenues €9-9.6 billion, and an EBIT margin of 7-8%), which factors in a decline in onshore prices, expected seasonal fluctuations in the business (higher activity in the second half), and the effect of synergies.

As Siemens Gamesa point out, in line with projections for the fiscal year, the group's sales during the first quarter amounted to €2,127 million (-23%). EBIT pre PPA, restructuring and integration costs in the quarter amounted to €133 million, and the margin was 6.3%. The company reported a net income of €-35 million due to restructuring and integration costs, the non-cash impact of the US tax reform on the value of tax assets, and amortisation of the PPA.

According to Siemens Gamesa, the quarter saw strong progress with the post-merger integration. Decisions about the product portfolio have been made. The first post-merger models of wind turbines have been presented to the market: SG 4.2-145 for onshore and SG 8.0-167 DD for offshore. In fact, the company has already received its first order for the latter model from Vattenfall.

Siemens Gamesa maintained the positive trend of the previous quarter and accelerated commercial activity in both the onshore and offshore segments, as reflected in the robust order intake of 2,800 megawatts (+29%), providing 80% coverage of expected onshore sales and fully covered in the case of offshore. India made a strong contribution after resumption of activity in this market. The company expects the Indian market to stabilise in 2018 and normalize in 2019. There was also a strong influx of orders from the US as well as from such countries as Denmark, Thailand and Egypt.

Offshore order intake was also strong, firming the company's world-leading position in this segment. In fact, offshore order intake doubled with respect to the same quarter of the previous year.

The company will held its Capital Markets Day on 15 February 2018.



Source: IWR Online, 30 Jan 2018