Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Siemens Energy cuts outlook as fresh problems emerge at wind unit

Published 01/20/2022, 04:22 PM
Updated 01/20/2022, 05:03 PM
© Reuters. FILE PHOTO: A trader walks next to Siemens Energy AG logos during Siemens Energy's initial public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 28, 2020.  REUTERS/Ralph Orlowski/File Photo

By Christoph Steitz

FRANKFURT (Reuters) - Siemens Energy on Thursday cut its outlook after wind division Siemens Gamesa warned of prolonged supply chain issues, renewing pressure on the German firm to fully take over the unit in order to get a better handle on its problems.

Siemens Energy, which owns 67% in Siemens Gamesa, said it now expects a margin on adjusted earnings before interest, tax and amortisation (EBITA) before special items in a range of 2% to 4% in 2022, down from 3% to 5% previously.

The announcement came shortly after Siemens Gamesa slashed its outlook for the third time in less than nine months, creating a headache for its German parent which has limited influence on the separately listed subsidiary.

"Performance was negatively impacted by supply chain related disruptions, which are now expected to last longer than previously anticipated, further affected by the continued impact of the COVID-19 pandemic," Siemens Gamesa said in a statement.

Siemens Gamesa's onshore division has been troubled for some time -- also caused by ramp-up issues around a new class of turbines -- but recent progress led Christian Bruch, the CEO of its parent, to be more hopeful.

The latest profit warning is expected to trigger fresh demands on Bruch to buy the remaining stake in Siemens Gamesa, worth around 4.3 billion euros ($4.9 billion) currently, or seek other ways to accelerate the turnaround.

Based on preliminary figures, Siemens Gamesa's loss before interest and tax before purchase price allocation and integration & restructuring costs came in at 309 million euros in the first quarter.

© Reuters. FILE PHOTO: A trader walks next to Siemens Energy AG logos during Siemens Energy's initial public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 28, 2020.  REUTERS/Ralph Orlowski/File Photo

This translated into an adjusted loss before interest, tax and amortisation before special items of 63 million euros for Siemens Energy, which also makes gas turbines, in the same period, compared with a 366 million profit last year.

($1 = 0.8846 euro)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.