Skip to Content
Global News Select

Siemens Gamesa Shares Drop on Profit Warning as Siemens Energy Also Slips

   By Joshua Kirby 

Shares in Germany's Siemens Energy AG and its Spanish subsidiary Siemens Gamesa Renewable Energy SA fell sharply in opening trade Thursday after the latter issued a profit warning for the fiscal year, leading Siemens Energy to also lower its outlook.

At 0745 GMT, shares in Siemens Energy traded 8.3% lower at EUR23.65, while Siemens Gamesa was down 14% at EUR22.66.

Late Wednesday, Siemens Gamesa said it now expects an adjusted earnings before interest and taxes margin of minus 1%-0%, from 3%-5% previously, after booking an adjusted operating loss of 150 million euros ($177.6 million) in the third quarter of the fiscal year on higher provisions. The renewables company also expects full-year revenue to be in the lower end of a guided range of EUR10.2 billion-EUR10.5 billion.

On the back of the results and guidance downgrade at its subsidiary, Siemens Energy in turn said it expects to miss its targeted adjusted margin for earnings before interest, taxes and amortization before special items for fiscal 2021 of 3.5%-5.5%. The energy company also expects third-quarter results to fall short of current market expectations.

Siemens Gamesa's third-quarter results were weak, while the guidance downgrade implies further difficulties in the year's final quarter, and will inflame investor concerns over the impact on margins of rising raw-material prices, analysts at Citi said.

"It is likely that investor questions will focus on the extent of any further pressure on margins for projects already in the backlog, since there had been greater concern around the impact of raw materials on margins for newly-ordered projects," the bank said.


Write to Joshua Kirby at; @joshualeokirby


(END) Dow Jones Newswires

July 15, 2021 04:14 ET (08:14 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.