SGRE sales fall amid India slowdown

SPAIN: Siemens Gamesa Renewable Energy (SGRE) has recorded a fall in sales and revenues in its first financial quarter since the merger.

SGRE said it expects the onshore market will pick up following the move to auctions

Revenues fell 7% year-on-year to €2.69 million in the firm's third quarter results. Sales reached 1.96GW-equivalent, a drop of 25% compared to the same period last year, SGRE reported.

SGRE said the fall in sales was due to a "market shut down" in India as the country moves to an auction-based system and "normal business volatility in the offshore market".

"Demand prospects remain positive, emerging markets continue to play a particularly important role and the renewal of auctions is reactivating mature markets, for example southern Europe, and activating new markets such as Argentina and Russia," SGRE said.

The firm said it had accelerated its integration, by creating synergies of €230 million, which are expected to be realised in the third year of operation – one year earlier than planned.

"We are highly satisfied with the progress to date in integrating the two companies. Things are progressing at a rapid rate: our company is ready to compete and lead in a growing and challenging market," said SGRE CEO Markus Tacke.

SGRE has also appointed Ricardo Chocarro as CEO of the company's onshore business, replacing Xabier Etxeberria. Chocarro has been Gamesa's CEO of Europe, Middle East and Africa (EMEA) since 2013.