Fiscal Q1 saw supply chain disruptions result in higher than expected cost inflation for wind turbine giant Siemens Gamesa (OTCPK:GCTAF); additionally, volatile market conditions have impacted customer investment decisions and led to project delays.
The impact has led to a 289m euro reduction in EBIT for the onshore wind segment in Q1; offshore remained profitable and the service segment delivered more than 20% EBIT margins in the quarter.
Taken together, Siemens realized 309m euros of EBIT losses on 1.8b euros of revenue in the quarter; order intake was 2.5b euros and backlog stands at 33.6b euros.
2022 guidance is adjusted as follows: midpoint revenue growth is now -5.5% YoY versus previous guidance of -2.5%; EBIT margins are expected to come in around -1.5% versus previous guidance of +2.5%; long-term margin expectations of 8-10% are unchanged.
With metals recycling business Schnitzer (NASDAQ:SCHN) reporting supply chain issues earlier in the month leading the stock lower by 25%, and Sherwin (NYSE:SHW) down 15% after pre-releasing weak results on cost inflation, all eyes are focused on the manufacturing sectors for signs of supply chain weakness ahead of earnings; particularly GE (NYSE:GE), given the Company's large wind turbine segment.
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