Siemens Gamesa pledges profitability resurgence by 2023

Credit: REUTERS/Vincent West

MADRID, Aug 27 (Reuters) - German-Spanish wind turbine maker Siemens Gamesa SGREN.MC said on Thursday it would boost waning profit margins by 2023, pledging to emerge from a financial slump that has been exacerbated by supply chain disruptions during the coronavirus pandemic.

Despite increased demand for renewable energy infrastructure to curb climate change, a shift to competitive auctions for developing new generation capacity has squeezed turbine suppliers, driving down the price they can command from wind farm developers whose budgets are no longer fattened by subsidies.

Siemens Gamesa forecast a return to an operating margin of 3-5% in 2021 and 8-10% in 2023, after that metric fell to a negative 6.7% in the third quarter of this year.

(Reporting by Isla Binnie; Editing by Nathan Allen)

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