HUTCHINSON, Kan. — While the future still looks bright for Siemens Gamesa and its wind energy platform, supply chain issues and other COVID related factors ate into the company's bottom line for the first quarter. Revenue fell by more than 20% year-over-year at $2.05 billion although order backlog continues to be strong at $38.4 Billion.
The onshore market obtained new orders for 1,791 MW, worth $1.4 billion. The market has been affected by the hiatus in the US and Spanish markets, together with the company's commercial strategy focused on controlling risk and prioritizing profitability over volume. Still, due to the increased costs and impacts to order backlog for onshore turbines, the manufacturer posted a loss of $327 million in the first quarter.
“We remain immersed in a very complex market environment, with disruptions and low visibility in the supply chain. In this context, we continue taking measures to protect our profitability and adapt to these dynamics, which will persist in the coming months,” Andreas Nauen, Siemens Gamesa’s Chief Executive Officer said. “However, we cannot forget the privilege of working in a sector with enormous potential and the promise of improving the future of the planet. Our backlog is a testament to our employees’ hard work and dedication.”
The supply chain issues forced the company to go to rolling furloughs or shut down production all together at many of its facilities including Hutchinson. It’s a problem the company says will last much longer than expected and could go well into the rest of the 2022 fiscal year.
The company also announced a major shake up in it’s leadership as current company CEO Andreas Nauen will be replaced by Jochen Eickholt starting March 1.
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