HUTCHINSON, Kan. — Earnings reports for companies with ties to the Hutchinson area continued to show the strain of the pandemic.
Siemens Gamesa reported Wednesday that it booked a total net loss of $172 million in its fiscal second quarter, down more than 400% on the $52.8 million profit in the same period last year.
The company cited a $53 million hit on profitability related to the COVID-19 pandemic, equivalent to 2.5% of revenues, as the chief reason for the performance in the period January to March. Revenue was 8% lower at $2.37 billion.
The public health emergency further complicated existing challenges in its onshore business such as the execution of projects in Northern Europe and the slowdown in India, the German-Spanish manufacturer said.
Siemens Gamesa said it has taken measures to deal with the pandemic, including re-routing certain supply chains, optimizing remote monitoring to guarantee service operations and extending periods for maintenance teams working at sea. It also forced the company to lay off a number of workers at both the Hutchinson nacelle and Fort Madison, Iowa, blade facilities.
The company, which withdrew guidance for the year recently, nevertheless said the long-term prospects for the industry and Siemens Gamesa remain sound.
The manufacturer has built a record order backlog of $26.3 billion and said in its release that it’s "well positioned to take advantage of sector growth outlook thanks to its geographical diversification and leadership in technology."