After a comprehensive review of Senvion's global business, the challenging market conditions and its operational performance, the new Management Board of Senvion has started to implement a transformation programme as a matter of urgency, designed to stabilise the company, eliminate inefficiencies and improve execution to tackle the problems that caused loss of revenues and profits and triggered a change of forecast.
Senvion adjusted its guidance for the financial year 2018 to reflect lower than expected revenues and profits, mainly as a result of delayed installations. As an immediate measure, the executive team is focusing on disciplined execution throughout the installation chain with the clear target to recover lost revenues and profits in the new financial year. A full transformation programme is being rolled out, focusing on four major areas of improvement:
- Re-focus on most attractive markets. In 2018, Senvion successfully entered new dynamic markets such as India and Latin America and will now increase its focus on promising growth areas.
- Streamlining its product portfolio and increase modularization to reduce costs.
- Increase competitiveness by saving measures through special efforts on localisation and sourcing improvements.
- Strengthening the financial basis in cooperation with lenders to stabilize the company through the transition period.
In light of this development, Senvion management decided to postpone the release of its annual financial statements for the fiscal year 2018 which was originally scheduled for 14 March 2019.