Between September and October, Siemens Gamesa has registered sales of 9.122 billion, with an Ebit pre PPA (Power Purchase Agreement) costs of integration and re-structuring of 693 million and an Ebit margin of 7.6%. This margin has been affected by the double digit fall in prices in the onshore aerogenerator business, partially compensated by synergies and productivity, as well a strong performance in the area of services.
Results for financial year 2018 more or less in line, low visibility in margins expected for 2019.
The position of net cash rose to 615 million euros. The portfolio of orders rose to 22.801 billion euros, + 10% yoy. The annual results for sales and margins were in line with the objectives set by the company. The Book-to-Bill is 1.3 X in the last 12 months (compared to 1.4 X in the last quarter). The company’s forecasts for demand for the period 2018-2025 point to single figure growth in onshore and double digit in the offshore market. Specifically, the guidance for 2019 points to a sales volume between 10 and 11 billion euros (in other words, a growth in sales of between 9.6% and 20.6% compared to this year) and a margin of EBIT pre PPA, costs R&D between 7% and 8.5%.
Despite the visibility in sales (with 80% covered) the company mentions the lower visibility over the level of EBIT, confronted by an environment of falling onshore prices, raw material inflation and volatility in numerous emerging markets.
Siemens Gamesa is closing its first financial year since the merger. The figures are roughly in line with expectations. The portfolio of orders covers 80% of sales in the mid point of the range estimated for 2019E (between 10 and 11 billion euros), however the company shows more caution about the margins EBIT pre-PPA and R&D costs (with a range between 7% and 8.5%) which will depend on one hand on the speed with which its cost-savings plan can be implemented, and, on the other hand, on the pressure of prices of raw materials and the pressure on prices of pending orders.