Wind turbine manufacturer Siemens Gamesa has announced a wider net loss after a challenging third quarter in the fiscal year.
Siemens Gamesa has adjusted its expected core earnings margin to -5.5%, from a previous view of -4%.
The firm reported a net loss of €446 million ($457.7 million), from a loss of €314 million in the same period last year.
Revenue for the quarter fell to €2.44 billion from €2.70 billion a year earlier.
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According to Siemens Gamesa, the negative performance is the result of market volatility, increased costs and supply chain congestion, factors that had a knock-on effect on manufacturing and project delivery.
Furthermore, the company experienced challenges in ramping-up the Siemens Gamesa 5.X onshore platform negatively impacting quarterly performance.
Siemens Gamesa announced in a statement that it will be taking decisive steps to overhaul its operating model, ensuring leaner, more efficient and simpler operations. Details of the new operating model will be announced in October this year.
“Under our new operating model, we will be able to support our customers faster and with greater expertise,” said Siemens Gamesa CEO Jochen Eickholt. “By setting up simpler processes, we will empower our people, teams and organizations to take responsibility and enable faster learning cycles.”
“The new setup will accelerate our company’s turnaround. It will provide a very clear picture of business activities and greater transparency overall regarding the trajectory that Siemens Gamesa will take as a global leader in the green energy transition.”
The strong momentum in renewables boosted the company’s backlog to a record €33,980 million, resulting from the drive to achieve energy independence and security and address the climate emergency.
According to Reuters, Siemens Gamesa is also weighing job cuts of up to 9% of its workforce in order to mitigate recent financial losses.
