Spain-based Siemens Gamesa posted positive third-quarter results, with revenue growing by 12% YoY, to €7,283 million in the first nine months of its financial year, but profits are below expectations, leading the company to trim its full-year profitability guidance.
According to Reuters, shares in the wind-turbine maker dropped by over 10% in trading on Tuesday 30 July.
The drop in revenue is due to decreasing prices for wind turbines across the market, increasing government subsidisation of wind energy, and an order-backlog topping €25 billion.
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The company enjoyed growth in all divisions, onshore and offshore wind and servicing, but earnings have also been hit by onshore execution challenges, particularly in India and Northern Europe.
The company logged the highest-ever quarterly order intake, with orders worth €4.7 billion (+42%YoY), driven particularly by strong performance in new offshore markets, but has an order backlog totalling €25.1 billion.
The intake was hit by market volatility in emerging markets, particularly in India, but the company says there are signs of recovery in the country, with a 453MW order that will be included in its fourth-quarter results.
The company is facing potential short-term challenges including Trade tariffs by the US and China, and Brexit, but it will counter these risks by raising prices, and introducing a new model to its range of turbines.