Siemens Energy reviews outlook as troubles at wind division deepen
2022.04.19 23:56
FILE PHOTO: A company logo of Siemens Energy AG is pictured during Siemens Energy’s initial public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 28, 2020. REUTERS/Ralph Orlowski
FRANKFURT (Reuters) -Siemens Energy on Tuesday said it was reviewing its full-year outlook after wind turbine division Siemens Gamesa unveiled another quarterly loss, ongoing operating problems and rising costs.
Siemens Energy AG also said the operating environment had become more challenging due to the war in Ukraine as well as sanctions imposed on Russia, adding it could not rule out further negative effects on sales and profits in 2022.
So far, the company has expected a margin on adjusted earnings before interest, tax and amortisation (EBITA) before special items in a range of 2% to 4% in 2022. Sales were expected to develop in a range of negative 2% to plus 3%.
Second-quarter order intake fell 27.5% to 7.9 billion euros ($8.52 billion) and the group swung to an adjusted loss before interest, tax and amortisation before special items of 21 million euros, down from a 288 million-euro profit last year.
The company pointed to Siemens Gamesa Renewable Energy (OTC:GCTAY) SA, in which Siemens Energy owns 67%, as a reason for the move. Siemens Gamesa earlier cited ramp-up problems of its next-generation class of onshore turbines, which it said were “more complex than previously understood”.
The Spanish-listed firm also blamed “further pressure on energy, commodities and transportation costs, availability of key turbine components, harbor congestion, and delayed customers’ investment decisions” for a 307 million-euro operating loss in the second quarter.
($1 = 0.9270 euro)
