Siemens Energy cuts profit outlook as Siemens Gamesa woes continue – EQ Mag
FRANKFURT : Siemens Energy ENR1n.DE on Thursday slashed its 2023 outlook after faulty components at the wind turbine fleet of Siemens Gamesa SGREN.MC led to higher warranty and maintenance costs, marking the latest setback in the group’s troubled relationship.
The German supplier of equipment to the power sector, which was spun off from Siemens AG SIEGn.DE in 2020, now expects a profit margin before special items of 1%-3% in the year through September, down from the 2%-4% previously forecast.
Siemens Energy owns 92.7% of Siemens Gamesa and is currently aiming to buy the rest of the division to get a better handle on operating issues that have caused a string of profit warnings and become a drag on performance.
Siemens Gamesa earlier reported a 760 million euro loss before interest and tax pre-purchase price allocation and before integration and restructuring costs for the first quarter, including a 472 million euro charge.
“These charges were triggered by an evaluation of the failure rate of the installed fleet, during which Siemens Gamesa detected a negative development of failure rates in specific components resulting in higher warranty and service maintenance costs than previously estimated,” Siemens Energy said.
Source: Reuters
