German energy group Siemens Energy said today that it will earn 1,878 million euros ($2,037 million) in the first quarter of fiscal 2024, which began in October 2023, after losing 384 million in the same period last year.
According to a statement from the German company this Tuesday on its preliminary results, the company will earn 7,649 million euros, 12.6% more than in the first quarter of fiscal 2023.
This increase in earnings is due to the increase in orders received, which amount to 15,381 million euros, 23.9% more than in the same period of the previous financial year.
Siemens Energy insists its results will continue to be weighed down by Spanish subsidiary Gamesa
Despite the improvement, results are hit by problems with its Spanish subsidiary Gamesa – which specializes in the manufacture of aircraft turbines – which led its parent company to demand guarantees from the German state on loans worth 7.5 billion euros this year.
The wind energy producer posted losses of 426 million euros, compared to a also negative 759 million euros in 2023, the statement said.
The energy company also said it would report its final results on February 7.
Cost reduction at Gamesa by 400 million euros by 2026
Siemens Energy announced last November that it wanted to reduce costs at Gamesa by 400 million euros by 2026. To do this, it will simplify the structures of the Spanish wind turbine group and focus on certain products and regions, especially Europe.
Siemens Energy said in a meeting with analysts that Gamesa will focus its onshore wind energy installation activities on criteria such as “the presence of favorable regulations and policies and the achievement of significant benefits that will allow optimization of the company's industrial footprint.”
The German company believed that its wind subsidiary Gamesa “suffered serious setbacks that impacted the solid performance of the other companies.”