Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Bolsa de Madrid  >  Siemens Gamesa Renewable Energy    SGRE   ES0143416115

News SummaryMost relevantAll newsSector newsTweets

Siemens Gamesa Renewable Energy : Shares Plunge on Missed Targets, Planned Job Cuts

share with twitter share with LinkedIn share with facebook
share via e-mail
11/07/2017 | 10:48am CET
   By Nathan Allen 

Shares in Siemens Gamesa Renewable Energy SA (SGRE.MC) dropped sharply Tuesday morning after the company reported weak fiscal 2017 results and said it could reduce its workforce by more than a fifth.

The maker of wind turbines said late Monday that it had missed its earnings target for the fiscal year and may cut up to 6,000 jobs worldwide--700 of which had already been announced--from its 27,000-strong workforce.

At 0855 GMT, shares traded at EUR11.11, down 7.3%.

Underlying earnings before interest and taxes, or Ebit, for fiscal 2017 were 774 million euros ($898 million).

Siemens Gamesa had previously cut its underlying Ebit forecast for the fiscal year ended Sept. 30 to EUR790 million from EUR900 million, adding that performance was hit by a downturn in the Indian market, as well as impairment charges in the U.S. and South Africa.

Siemens Gamesa, formed this year through the merger of Spain's Gamesa and Siemens Wind Power, also forecast that sales in the current fiscal year would fall to between EUR9 billion and EUR9.6 billion. For fiscal 2018, Siemens Gamesa expects an underlying Ebit margin of 7% to 8%.

JP Morgan said it thinks the lower end of both the sales and margin guidance are realistic, in part due to intense price pressure.

Despite the weak results, Goldman Sachs said it remains positive on the company and maintained its buy rating on the stock, mostly due to margin stability.

"We believe that the 2018 Ebit margin represents a good base for the company on what we consider a trough year driven by weakness of the Indian market," it said.

Goldman added that margins should expand in the 2019 to 2020 period as volumes recover, while planned synergies and layoffs begin exerting a positive effect on Siemens Gamesa's balance sheet.

However, the bank noted that cash-flow generation and pricing pressures remain areas of concern that should be monitored.

Write to Nathan Allen at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
11/16 Siemens to cut 6,900 jobs to tackle flailing turbines business
11/16 Siemens to cut 6,900 jobs to tackle flailing turbines business
11/16 SIEMENS GAMESA RENEWABLE ENERGY : welcomes The Queen Elizabeth to Hull
11/14 Nordex cuts sales goal as pressure on wind sector intensifies
11/10 EARNINGS RELEASE, FINANCIAL RESULTS : Targets Achieved - Another Outstanding Ye..
11/07 European shares pull away from two-year high, earnings updates disappoint
11/07DJSIEMENS GAMESA RENEWABLE ENERGY : Shares Plunge on Missed Targets, Planned Job C..
11/07DJIberdrola Nine-Month Net Profit Rose 18%
11/06 Siemens Gamesa to cut as many as 6,000 jobs
11/06 SIEMENS GAMESA RENEWABLE ENERGY : obtains revenues of €11 billion with an EBIT m..
More news
News from SeekingAlpha
11/17 Industrials Sector Has Quad/Graphics, Navios, & Dynagas Top Gainers Per Novem..
11/06 Siemens Gamesa to cut 6,000 jobs
11/03 European wind turbine makers plunge on U.S. tax proposal
10/26 Siemens Gamesa gets wind turbine order for major European project
10/20 REUTERS : Iberdrola concerned about Siemens management of wind power JV
Financials (€)
Sales 2018 9 791 M
EBIT 2018 663 M
Net income 2018 132 M
Finance 2018 564 M
Yield 2018 1,67%
P/E ratio 2018 32,66
P/E ratio 2019 16,78
EV / Sales 2018 0,66x
EV / Sales 2019 0,57x
Capitalization 7 060 M
Duration : Period :
Siemens Gamesa Renewable E Technical Analysis Chart | SGRE | ES0143416115 | 4-Traders
Technical analysis trends SIEMENS GAMESA RENEWABLE E
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 17
Average target price 14,4 €
Spread / Average Target 39%
EPS Revisions
Markus Tacke Chief Executive Officer & Director
Rosa María García García Chairman
Ignacio Artázcoz Barrena Chief Financial Officer
Alan Feeley Chief Information & Cyber Security Officer
Carlos Emilio Rodríguez-Quiroga Menendez Secretary, Executive Director & Legal Counsel
Sector and Competitors