Senvion factory closures force earnings down

GERMANY: Senvion has reported a loss of earnings in Q1 2017, due to the closure of factories and staff lay- offs.

Senvion recorded a loss in earnings in the first quarter of 2016
Senvion recorded a loss in earnings in the first quarter of 2016

In March, Senvion announced a restructuring programme including job cuts and factory closures, mostly in Germany, to ensure global competitiveness.

As a result, the company's EBITDA "after extraordinary items" for the first quarter of the year totalled a loss of €11.4 million.

The firm said the loss included the €32.8 million required in the closing of factories.

Underlying EBITDA, however, increased 11.3% to €21.4 million. The company said a lower operation expenditure was proof the restructuring programme was "already bearing fruit".

Revenues increased 7.7% to €392 million thanks to strong growth in its offshore wind business.

Offshore revenues grew some 219% to €91 million from €29 million a year earlier due to the delivery of turbines to the 332MW Nordsee One project in the German North Sea.

"Our Q1 results are in line with our expectations, showing continued growth in revenues, while in the period we have implemented a significant part of our cost reduction programme," said Senvion CEO Jürgen Geissinger.

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