Siemens Gamesa cuts losses by 66.5%, though it continues to weigh on German parent Siemens Energy

Siemens Gamesathe Basque subsidiary of the German group Siemens Energylost a total of 1,262 million euros in the first 9 financial months (from October 2023 to June 2024), which is 66.5% less than in the same period of the previous year. However, the above-mentioned company continues which put pressure on the accounts of the German parent company.

According to data released by Siemens Energy last Wednesday, the company earned $1,477 million during the first nine months of the year, with Gamesa being the only subsidiary to close negatively: losses between April and June amounted to $463 million, a loss of 81.9% less.

In addition, Gamesa’s results are still affected by the quality problems of the models of the 4.X and 5.X wind turbineswhich ceased sales last year after errors were discovered, forcing its German parent company to be rescued by the German state.

Increase in the cost of products

In addition to these issues, Siemens Gamesa, which has three factories in the BAC (Zamudio, Asteasu and Mungia), was also affected by the increase in product costs, start-up problems in the offshore area and the update of the statistical models used to evaluate the wind turbine fleet.

During the last nine months to June, Siemens Gamesa invoiced 6,926 million, up 6.5%, of which 2,569 million corresponded to the last quarter, up 25.1%.

Despite all these challenges, Siemens Energy’s revenue grew by 9.4% to 24,724 million in the first nine months (to June 2024) thanks to services and new unit growth. Orders fell by 11.7% to 35,213 million, thanks to Gamesa and the network technologies division.