Categories: Energy

Siemens Energy cuts sales outlook on heels of Siemens Gamesa

Siemens Energy (ENR1n.DE), which supplies turbines to the power sector, on Wednesday lowered the upper end of its target range for 2021 sales, hurt by weaker-than-expected demand, project delays and the ongoing coronavirus crisis.

Revenues are now expected to grow 3-8% in the year to September, compared with a previous range of 2-12%. According to Refinitiv estimates, sales are expected to grow 6% to 29.1 billion euros ($35 billion).

The outlook cut comes less than a week after Siemens Gamesa (SGREN.MC), the world’s No. 1 maker of offshore wind turbines in which Siemens Energy owns 67%, warned of customers deferring projects and the ongoing impact of COVID-19 in India and Brazil.

Spun off from former parent Siemens AG (SIEGn.DE) last year, Siemens Energy has seen its shares rise by more than a fifth since its listing, boosted by cost cutting measures including the reduction of 7,800 jobs, or 8.5% of the total. read more

Orders rose by 39% in the second quarter, while sales fell 4.4%, the company said, adding operating profit — adjusted earnings before interest, tax and amortisation — more than doubled to 197 million euros.

($1 = 0.8319 euros)

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/business/energy/siemens-energy-lowers-top-end-2021-sales-outlook-2021-05-05/

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