Siemens Energy turns gloomier as wind turbine problems mount

FRANKFURT (Reuters) – Siemens Energy warned on Wednesday sales and margins this year would be at the low end of its forecast range due to worsening problems at wind turbine division Siemens Gamesa, which has been hit hard by supply chain disruptions.

Results at Siemens Gamesa, which in January issued its third profit warning in nine months, mask a solid performance at Siemens Energy’s business focused on coal- and gas-fired power stations and turbines.

“Disappointing again is the performance of Siemens Gamesa which is weighing heavily on Siemens Energy,” Siemens Energy Chief Executive Christian Bruch said, adding the situation had “aggravated further since the last profit warning”.

Siemens Energy, which owns 67% of Siemens Gamesa, said it now expects 2022 sales at the low end of its forecast range, which spanned a decline of 2% to an increase of 3%.

The group’s margin on adjusted earnings before interest, tax and amortisation (EBITA) before special items is also expected to come in at the low end of the 2%-4% forecast range, it said.

Siemens Energy, which released preliminary second-quarter results last month, said it swung to a 252 million euro ($265 million) net loss in the period due to the problems at Siemens Gamesa, compared with a 31 million profit last year.

($1 = 0.9493 euros)

(Reporting by Christoph Steitz; Editing by Mark Potter)