Siemens Gamesa Sinks 15% After Warning About Results
Shares of the wind turbine maker have accumulated losses of nearly 32% since the start of the year.
Siemens Gamesa has decided to downgrade its forecasts for this year’s results. A warning that was released to the market yesterday and that is being reflected in the shares of the renewable energy company: bonds are falling close to 15% in Thursday’s session.
According to the newspaper Cinco Dias, citing a statement sent to the Spanish market regulator, Siemens Gamesa expects revenues to be between €10,200 and €10,500 million, after having recorded provisions of €229 million to cover to an increase in charges on ongoing projects due to rising raw material prices.
The company also made adjustments to margin estimates, at a time when preliminary data for the third fiscal quarter, which will be released on July 30, point to sales of 2.7 billion euros and losses of 150 million euros.
Faced with this downward revision, the bonds sank, with the regulator temporarily suspending their trading. Shares of the wind turbine manufacturer followed close to 22 euros, after having closed on Wednesday at 26.28 euros. The company has accumulated losses of almost 32% since the start of the year.
Analysts at Renta 4, cited by the newspaper, refer that this review is “negative news”, noting that the “effects of the pandemic and the rise in prices of raw materials and transport hinder [the company’s] goals and raise doubts about the ability to return to positive results onshore”.