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The Siemens Gamesa Crisis Persists, but Financial Recovery is on the Horizon

Siemens Gamesa’s Basque division, Siemens Energy, has reported a loss of 426 million euros during the first fiscal quarter, a decrease of almost 50% compared to the losses recorded in the same period last year.

The sale of onshore wind power generators remains suspended by the division, as confirmed by CEO Christian Bruch in a press conference. This suspension will last at least until 2025. Bruch attributes the cash outflow and the accumulation of net operating working capital over the past year to the losses, which have negatively impacted Siemens Energy’s cash flow but not the actual results.

However, Gamesa’s parent company has managed to regain profitability, earning a profit of 1.582 billion euros in its first fiscal quarter. These profits primarily come from the sale of an 18% stake in its Indian subsidiary to the parent company Siemens AG, for a total of 2.1 billion euros.

Siemens Energy had to seek assistance from the German government in November last year to avoid bankruptcy. At that time, the German government provided public guarantees worth 7.5 billion euros, which were supplemented by 4.5 billion euros from a consortium of German banks. Although the exact amount has not been revealed, the Spanish government has also committed to contributing to the rescue of Gamesa’s business through CESCE and loans.

Overall, Siemens Gamesa continues to face challenges, but there are signs of financial recovery. The division continues to evaluate strategies to strengthen its position in the market and overcome current obstacles.

Frequently Asked Questions (FAQs) based on the main topics and information presented in the article:

1. What was the reported loss by Siemens Gamesa during the first fiscal quarter?
– Siemens Gamesa reported a loss of 426 million euros during the first fiscal quarter.

2. What was the decrease compared to the same period last year?
– This figure represents a decrease of almost 50% compared to the losses recorded in the same period last year.

3. Why is the sale of onshore wind power generators suspended by the division?
– The sale of onshore wind power generators is suspended due to internal decisions of the company, confirmed by CEO Christian Bruch.

4. When is this suspension expected to be lifted?
– This suspension is expected to last at least until 2025.

5. What was the profit earned by Gamesa’s parent company in its first fiscal quarter?
– Gamesa’s parent company earned a profit of 1.582 billion euros in its first fiscal quarter.

6. Where do these profits primarily come from?
– These profits primarily come from the sale of an 18% stake in its Indian subsidiary to the parent company Siemens AG.

7. What measures were taken to avoid Siemens Energy’s bankruptcy?
– Siemens Energy had to seek assistance from the German government and received public guarantees worth 7.5 billion euros, in addition to support from a consortium of German banks.

8. Did the Spanish government also contribute to the rescue of Gamesa’s business?
– Yes, the Spanish government also committed to contributing to the rescue of Gamesa’s business through CESCE and loans.

9. Is Siemens Gamesa experiencing financial recovery?
– Although Siemens Gamesa continues to face challenges, there are signs of financial recovery, and the division continues to evaluate strategies to strengthen its position in the market and overcome current obstacles.

Definitions of key terms or jargon used in the article:

– Onshore wind power generators: Refers to devices used to generate electrical power from wind on land areas, usually through the installation of onshore wind turbines.

– Parent company: In this context, refers to the main or parent company that owns a subsidiary.

– Cash flow: Refers to the movement of money in and out of a company during a specified period of time.

Suggested related links to the main domain:

1. Siemens Gamesa website
2. Energy Management page on Siemens website
3. Power and Gas page on Siemens website
4. Siemens products page