Jul 30, 2020 7:44 PM

Pandemic and service disruptions take toll on Siemens Gamesa earnings

Posted Jul 30, 2020 7:44 PM

HUTCHINSON, Kan. — The pandemic took a big hit on Siemens Gamesa as postponed or canceled onshore wind projects, along with supply chain difficulties put the company into the red in the third quarter. 

The number one wind turbine maker reported a net loss of $525.6-million compared with a profit of $24.2-million in 2019. Revenue was off 8% at $2.7-billion.

Still, the company was able to keep and secure a large backlog of orders which were positive. The company said it was able to increase its order book by 14%.

The Onshore business was severely affected by the uncertainty created by the pandemic as there were delays in signing contracts in all three regions, and other challenges such as the slowdown in India and Mexico.

The company Offshore was able to sign on 2860 MW of new orders which was an increase of 87% year-over-year.

Siemens Gamesa was forced to furlough 200 workers in Hutchinson in April when supply lines were disrupted. The workers were back at their jobs by the end of the month.