FORBES | Siemens Gamesa Renewable Energy's new financial strategy will look familiar to those following the pinched U.S. shale sector: the German-Spanish wind turbine manufacturer plans to focus less on breakneck growth, and more on profitability and cash generation.
"We cannot live from volume," C.E.O. Andreas Nauen said on August 27th in a conference call as the company unveiled its new strategy. "We have to make a profit."
With revenue of more than €10 billion in 2019, Siemens Gamesa has emerged as the world's number two builder of the Statue of Liberty-sized wind turbines now proliferating across Europe, the U.S. and Asia, lagging only Denmark's Vestas Wind in total capacity installed last year. But COVID-19 shutdowns and slowdowns have spoiled Siemens Gamesa's growth plans, particularly at its lackluster onshore wind segment. The onshore business has been "severely affected" by uncertainties caused by the virus, including delayed contract signings and slowdowns in India and Mexico. The firm reported a brutal loss of nearly €500 million in the quarter from April through June, after netting a €21 million profit during the same period a year ago.
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