Siemens Gamesa: shares in a spin on weak outlook
(CercleFinance.com) - Wind turbine maker Siemens Gamesa's shares tumbled on Tuesday after the company reported full-year results at the bottom of its guidance range and gave a rather weak outlook.
In a statement, the company said adverse factors affecting the wind industry, such as price pressure, are set to persist in the short term.
Consequently, Siemens expects its 2019/2020 financial year to be a "transitional year," with revenues projected between 10.2 billion euros and 10.6 billion euros, with an EBIT margin of 5.5%-7%.
For full-year 2018/2019, which ended in late September, the company reported an EBIT margin of 7.1%, with a 12.1% year-on-year increase in revenues to 10.2 billion euros.
Siemens Gamesa had previously forecast a margin of 7%-8.5%, on revenues in between 10 billion and 11 billion euros.
In order to maintain its competitiveness, the company said it plans to cut its global team by up to 600 white collar staff worldwide over the next two years.
The shares are in a spin this morning, falling over 13% in Madrid.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
In a statement, the company said adverse factors affecting the wind industry, such as price pressure, are set to persist in the short term.
Consequently, Siemens expects its 2019/2020 financial year to be a "transitional year," with revenues projected between 10.2 billion euros and 10.6 billion euros, with an EBIT margin of 5.5%-7%.
For full-year 2018/2019, which ended in late September, the company reported an EBIT margin of 7.1%, with a 12.1% year-on-year increase in revenues to 10.2 billion euros.
Siemens Gamesa had previously forecast a margin of 7%-8.5%, on revenues in between 10 billion and 11 billion euros.
In order to maintain its competitiveness, the company said it plans to cut its global team by up to 600 white collar staff worldwide over the next two years.
The shares are in a spin this morning, falling over 13% in Madrid.
Copyright (c) 2019 CercleFinance.com. All rights reserved.