By Joshua Kirby
Siemens Energy AG said on Wednesday evening that it plans to miss its full-year margin guidance, after Spain’s Siemens Gamesa Renewable Energy SA lowered its own guidance for fiscal 2021 as a result of disappointing third quarter results.
The German energy company said it no longer expected to hit the bottom of its adjusted profit before interest, taxes and depreciation before special items margin of 3% to 5%. The updated forecast comes after Siemens Gamesa said it expects negative earnings before interest and taxes of minus 1% to 0% for fiscal 2021, down from 3% to 5% previously. Siemens Gamesa also expects revenue in the lower end of a previously guided range of 10.2 billion to 10.5 billion euros (12.07 to 12.43 billion dollars).
Siemens Energy said it now expects third quarter results to be lower than current market expectations due to the results of Siemens Gamesa, which showed an adjusted operating loss of 150 million euros in the during the three months at the end of June. The results are attributable to higher provisions for raw material prices and contract costs around its 5.X turbine platform, particularly in Brazil, Siemens Gamesa said.
Siemens Energy has reiterated its group revenue forecast for the full year of 3% to 8% nominal growth, as well as its revenue and adjusted EBITA margin forecast in its segment gas and electricity.
The company will release its third quarter results on August 4 as scheduled.
Write to Joshua Kirby at [email protected]; @joshualeokirby