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Released November 20, 2017 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The newly formed Siemens-Gamesa wind turbine giant (Madrid, Spain) is to cut 6,000 jobs worldwide in a effort to become more "competitive."
The announcement was made as the company released financial figures for the second half of 2017 that recorded a 12% drop in sales. Operating profit was 192 million euro, a drop of 63%, which was blamed on "specific onshore market conditions, including the temporary suspension of the Indian market, and impairments relating to accounting adjustments to inventories." The company highlighted that the Indian government is planning 3 gigawatts (GW) in central wind auctions up to next March, and the "market is expected to fully recover in 2019."
The job cuts represent about 20% of the company's workforce and will impact its offices throughout 24 countries. Siemens-Gamesa was created earlier this year by the merger of Spanish renewable energy major Gamesa Corporation Technology S.A. (Zamudio, Spain) and the wind energy business of Germany's Siemens AG (Munich, Germany). For additional information, March 20, 2017, article - Europe Clears Way for Siemens-Gamesa Merger. At the time of the merger, the company expected that 700 jobs would be shed from Gamesa.
"Our financial performance is still not at the level we're all aiming for," said Markus Tacke, chief executive officer of Siemens Gamesa. "But it's clear that we are making positive progress as we carry out our plan to make this company an industry leader. Our integration efforts are proceeding ahead of schedule, and I'm confident that the decisions we're making will allow us to better respond to changing market conditions, and to better serve our customers and other stakeholders."
Siemens Gamesa has an installed base of 75 GW, an order book of 20.9 billion euro ($22.4 billion) and revenues of 11 billion euro ($11.8 billion). The new company is placed ahead of rivals MHI Vestas Wind Systems A/S (Aarhus, Denmark) and General Electric (GE) (NYSE:GE) (Fairfield, Connecticut) at the top of the global wind turbine marketplace.
Between April and September, revenue from the sale of wind turbines decreased by 15% to 4.4 billion ($5.2 billion), due to pricing pressure and "challenging conditions" in the onshore wind sectors of India and the U.K. The United States, Brazil and China were the busiest onshore sectors for the company in the second half of the year. In the offshore sector, there was a 16% bump in revenues.
In September, Industrial Info reported that Siemens-Gamesa was to replace Adwen (Bremen, Germany) as the sole turbine supplier for two French offshore windfarms with a combined generating capacity of almost 1,000 megawatts (MW). For additional information, see September 27, 2017, article - Siemens Secures Two French Offshore Windfarms.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The announcement was made as the company released financial figures for the second half of 2017 that recorded a 12% drop in sales. Operating profit was 192 million euro, a drop of 63%, which was blamed on "specific onshore market conditions, including the temporary suspension of the Indian market, and impairments relating to accounting adjustments to inventories." The company highlighted that the Indian government is planning 3 gigawatts (GW) in central wind auctions up to next March, and the "market is expected to fully recover in 2019."
The job cuts represent about 20% of the company's workforce and will impact its offices throughout 24 countries. Siemens-Gamesa was created earlier this year by the merger of Spanish renewable energy major Gamesa Corporation Technology S.A. (Zamudio, Spain) and the wind energy business of Germany's Siemens AG (Munich, Germany). For additional information, March 20, 2017, article - Europe Clears Way for Siemens-Gamesa Merger. At the time of the merger, the company expected that 700 jobs would be shed from Gamesa.
"Our financial performance is still not at the level we're all aiming for," said Markus Tacke, chief executive officer of Siemens Gamesa. "But it's clear that we are making positive progress as we carry out our plan to make this company an industry leader. Our integration efforts are proceeding ahead of schedule, and I'm confident that the decisions we're making will allow us to better respond to changing market conditions, and to better serve our customers and other stakeholders."
Siemens Gamesa has an installed base of 75 GW, an order book of 20.9 billion euro ($22.4 billion) and revenues of 11 billion euro ($11.8 billion). The new company is placed ahead of rivals MHI Vestas Wind Systems A/S (Aarhus, Denmark) and General Electric (GE) (NYSE:GE) (Fairfield, Connecticut) at the top of the global wind turbine marketplace.
Between April and September, revenue from the sale of wind turbines decreased by 15% to 4.4 billion ($5.2 billion), due to pricing pressure and "challenging conditions" in the onshore wind sectors of India and the U.K. The United States, Brazil and China were the busiest onshore sectors for the company in the second half of the year. In the offshore sector, there was a 16% bump in revenues.
In September, Industrial Info reported that Siemens-Gamesa was to replace Adwen (Bremen, Germany) as the sole turbine supplier for two French offshore windfarms with a combined generating capacity of almost 1,000 megawatts (MW). For additional information, see September 27, 2017, article - Siemens Secures Two French Offshore Windfarms.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
