German shame. Siemens Gamesa worsens its crisis:…

Siemens Gamesa She has not turned for a long time, as the blades of her wind turbines do, and she is deepening in her crisis, as can be seen in the results for the first nine months (October to June) of his exercise, while German shamelessness grew. Concretely, it has tripled lossesadded other profit warning (forecast reduction) and will undertake new thousands of layoffs.

The wind turbine manufacturer – previously Spanish and for some years German – recorded losses of 1,226 million euros against 368 million a year ago, and of which 446 million corresponded to its third fiscal quarter (April to June). The operating profit (Ebit) before PPA and integration and restructuring costs were negative 957 million, assuming an Ebit margin of -14.8%. For their part, the Sales were reduced by 12%, to 6,442 million, and the net financial debt It increased by 1,437 million in one year, from 838 million to 2,275 million, although the company points out that it has 4,450 million in authorized financing lines and total liquidity of 3,036 million. Of course, during the third fiscal quarter, it increased in requests for 3,523 million, i.e. 2.3 times more than a year ago, split between offshore wind power (off the coast), land and services, and bringing the order book to a record 33.980 million.

figures for the first nine months of its financial year for Siemens Gamesa

Siemens Gamesa continues to wreak havoc on the Market volatility and delays in Supply Chainas well as the internal issues of your company terrestrial wind (also called down), and this tricky scenario even led him to the sale of 3,900 megawatts (MW) of wind projects under development, which is its core business, last April. In view of the poor results, he announces a further drop in forecasts… and he has already had three in less than nine months: he now expects a Operating margin of -5.5% instead of -4%, for component failures and repairs on previous platform models down.

On May 24, Eickholdt only mentioned adjustments in management positions (-30%) and that no layoffs were planned. But now there is a change: further downsizing is expected and stresses that they have to renegotiate contracts with their customers due to rising energy and raw material prices.

The company brags about it “takes immediate action to stabilize the business and accelerate long-term value creation”, but that supposes more German shamelessness. remember that Siemens Energy launched a takeover bid to acquire 32.9% of the capital that it does not control and to exclude from the stock market (where until the beginning of May he accumulated a 46% depreciation last year and which is now 26%… and that will mean more debt, with which he hopes to solve the crisis that the wind turbine manufacturer has been going through since 2020. He also points out that “as part of the mistral strategic programthe company launched a new operating model, effective January 1, 2023, with a simplified and more agile structure”.

Don’t forget that until now it was rumored that it could be raised a transfer of the head office to Germanya movement that will come after other painful ones in Spain: in 2020, he does not hesitate to undertake plant closures and layoffs neither in betray the ‘batzoki’ by taking the executive headquarters to Madrid few months ago. The CEO of Siemens Energy talked about “structural optimization”, but with the expectation of maintaining the headquarters in Zamudio (Biscay)…perhaps after receiving a touch of Basque nationalism. At Siemens Energy’s “Capital Markets Day” held on May 24, which Gamesa’s CEO attended, Jochen Eickholdt, few details were given on the adjustments, except that the management positions will be reduced by 30% and that no layoffs were planned. But all that has changed now already planning a new model cut: although the details will be known on October 1, Reuters pointed out that could be 2,500 layoffswithin a workforce of 27,380 workers (4,700 in Spain), and Eickholt himself spoke of “differences between the skills needed and those given” and of “disproportionate structural costs”, but they will be strengthened COO teams (Director of Operations) and CTO (chief technology officer). Also they need rto negotiate contracts with your customers due to rising energy and commodity prices as they are expected to continue to rise in fiscal 2023.

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