Stock Market News

Siemens Gamesa to replace head of struggling onshore wind unit – memo

2022.10.05 08:37



© Reuters. FILE PHOTO: A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio, Spain, June 20, 2017. REUTERS/Vincent West/File Photo

By Isla Binnie

(Reuters) – Struggling wind turbine maker Siemens Gamesa will replace the head of its onshore unit due to recent financial losses that have piled pressure on the business, an internal memo seen by Reuters showed.

Chief Executive Jochen Eickholt said in an emailed internal memo seen by Reuters that Lars Bondo Krogsgaard, chief executive of the Spanish-listed company’s onshore unit, “will not be with Siemens Gamesa any longer”.

“This decision is driven by a need for change due to the losses in the onshore business and the continuous underperformance that has triggered several profit warnings and massive deviations from budgets, forecasts, market plans and non-conformance costs,” Eickholt said in the email.

Krogsgaard, when asked for comment on Wednesday, said he wished his “former employer and colleagues all the best for the future”.

A Siemens Gamesa spokesperson confirmed that the executive had left the company and “we are looking for a successor.”

The company was formed in a 2017 merger between Spain’s Gamesa and the wind unit of Germany’s Siemens. It reported a loss of 446 million euros in the three months to August, deeper than the 314 million euros it lost in the same period of 2021, and said component failures and repairs, mostly in the onshore business, cost around 4.6% of revenue.

Turbine makers are struggling to profit from strong global demand for clean energy from sources like wind while they grapple with soaring raw material and logistics prices, lofty import duties, the fallout from COVID-19 and Russia’s invasion of Ukraine.

Siemens Gamesa, long a leader in the offshore turbine market, has said its recent warnings on profit were partly due to problems delivering new products at its onshore division. The issues have contributed to main shareholder Siemens Energy moving to buy the stake in the company it does not already own.

The company aims to fix issues at the onshore unit over the next three months, Eickholt told Reuters last week. The company also plans to lay off 2,900 staff.

Eickholt now expects a return to profit in 2024, in spite of a number of onerous projects in the onshore division that will likely stretch into that year.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 97,914.23 0.86%
ethereum
Ethereum (ETH) $ 3,416.31 2.03%
tether
Tether (USDT) $ 1.00 0.01%
solana
Solana (SOL) $ 256.78 0.16%
bnb
BNB (BNB) $ 656.39 3.16%
xrp
XRP (XRP) $ 1.45 9.05%
dogecoin
Dogecoin (DOGE) $ 0.435984 6.57%
usd-coin
USDC (USDC) $ 0.999901 0.01%
cardano
Cardano (ADA) $ 1.06 4.15%
staked-ether
Lido Staked Ether (STETH) $ 3,414.05 2.11%
tron
TRON (TRX) $ 0.213953 3.85%
avalanche-2
Avalanche (AVAX) $ 42.43 1.05%
the-open-network
Toncoin (TON) $ 6.43 17.08%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 4.11%
stellar
Stellar (XLM) $ 0.496362 26.45%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,039.91 1.96%
polkadot
Polkadot (DOT) $ 9.98 45.82%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,571.14 0.80%
chainlink
Chainlink (LINK) $ 18.15 9.05%
bitcoin-cash
Bitcoin Cash (BCH) $ 512.64 3.57%
weth
WETH (WETH) $ 3,414.71 2.25%
sui
Sui (SUI) $ 3.46 2.07%
pepe
Pepe (PEPE) $ 0.000021 0.21%
leo-token
LEO Token (LEO) $ 8.61 0.84%
near
NEAR Protocol (NEAR) $ 6.44 5.67%
litecoin
Litecoin (LTC) $ 100.24 7.15%
aptos
Aptos (APT) $ 12.98 4.76%
uniswap
Uniswap (UNI) $ 10.90 10.22%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,598.08 2.54%
hedera-hashgraph
Hedera (HBAR) $ 0.153111 0.32%
internet-computer
Internet Computer (ICP) $ 11.71 2.04%
crypto-com-chain
Cronos (CRO) $ 0.201566 8.03%
usds
USDS (USDS) $ 0.997169 0.90%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.590919 14.77%
ethereum-classic
Ethereum Classic (ETC) $ 29.91 2.75%
render-token
Render (RENDER) $ 7.85 3.34%
bittensor
Bittensor (TAO) $ 533.53 3.36%
kaspa
Kaspa (KAS) $ 0.15585 1.85%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.46 12.47%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.07%
arbitrum
Arbitrum (ARB) $ 0.884229 7.41%
bonk
Bonk (BONK) $ 0.000048 2.01%
whitebit
WhiteBIT Coin (WBT) $ 24.75 0.41%
vechain
VeChain (VET) $ 0.043368 17.66%
dai
Dai (DAI) $ 0.999406 0.03%
cosmos
Cosmos Hub (ATOM) $ 8.77 14.20%
dogwifcoin
dogwifhat (WIF) $ 3.33 3.67%
filecoin
Filecoin (FIL) $ 5.54 12.64%
mantra-dao
MANTRA (OM) $ 3.68 4.97%
blockstack
Stacks (STX) $ 2.09 3.56%