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Following a profit warning in June, Siemens Energy has revised downward its outlook for 2023. Due to the problems with its wind turbines, the company expects its loss to reach as much as 4.5 billion euros this year, learn the quarterly results.

Siemens Energy already packed out a profit warning in June. The company said then that its results were "held back" by the poor performance of Siemens Gamesa Renewable Energy, the subsidiary that makes wind turbines.

In related news, Siemens Energy lowered its outlook for 2023.

  • Siemens Energy announced back in June that were putting pressure on earnings expectations for 2023. After that profit warning, the share price dipped about 40 percent.
  • The company now expects the price tag of the repairs to be 2.2 billion euros. As a result, the expected net loss for this year will reach 4.5 billion euros.
    • Earlier, Siemens Energy still assumed that the repair works would cost more than 1 billion euros and that the loss for this year would exceed the 712 million euros for the previous fiscal year.
  • Siemens Gamesa's board is currently investigating the quality problems, which some analysts say could crop up across the industry. "The quality problems really stem from the past, but I think we put platforms on the market too quickly," Christian Bruch, CEO of Siemens Energy, told U.S. news site .
    • "The problems occur in certain rotor blades and main bearings of the 4.X and 5.X platforms," a press release reads. Some sources from the news agency add that Siemens Energy is trying to delay deliveries of its 5.X platform by seven months to contain the impact of the quality problems at Gamesa

Other figures

Details: Siemens Energy saw an increase in revenue.

  • Sales rose 8 percent last quarter to 7.5 billion euros. Orders were even up 54 percent to 14.9 billion euros.
    • However, net income fell from a loss of 564 million euros to a loss of 2.9 billion euros, mainly due to the write-off of Siemens Gamesa.
  • The company further announced that it expects an increase in comparable sales of 9 to 11 percent this year, instead of 10 to 12 percent.
  • The operating profit margin before special items Siemens Energy now estimates at -8 to -10 percent, where previously a small plus was expected. (axis)

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