Siemens Gamesa Swings to Loss and Cuts Guidance

Siemens Gamesa Renewable Energy SA said Tuesday that it swung to a loss in the first quarter of its fiscal 2020 due to project delays, and lowered its full-year guidance.

The Spanish wind-turbine maker SGRE, +5.38%  said it booked a quarterly loss of 174 million euros ($192.6 million) for the quarter ended Dec. 31, from a profit of EUR18 million in the year-earlier period.

The company attributed the loss to unforeseen one-off charges of EUR150 million related to five onshore projects in Northern Europe, mainly Norway, which were delayed due to adverse road and weather conditions.

Revenue fell to EUR2 billion from EUR2.6 billion the previous year, the company said. A FactSet-compiled consensus had revenue at EUR2.22 billion.

Siemens Gamesa adjusted its guidance for the full year, saying it now forecasts an earnings before interest and tax margin--before power purchase agreement and restructuring and integration costs--between 4.5% and 6%, below previous expectations of between 5.5% and 7%.

“This was not an easy quarter for Siemens Gamesa. The company’s financial performance fell short of the expectations we had when we set our targets for the year,” said Chief Executive Markus Tacke. “However, this was a one-off impact and we do not expect it to recur in future quarters as we are taking the necessary measures.”

The company reported a loss in EBIT before PPA and I&R of EUR136 million from a profit of EUR138 million in the year-earlier period. Its order intake came to EUR4.6 billion, leading to an order book of EUR28.09 billion.