Sustainability Wind power division is weakening
Almost three billion euros – record loss for Siemens Energy
Status: 07.08.2023 | Reading time: 2 minutes
Siemens Energy published figures for the 3rd business quarter on Monday (archive photo)
Source: dpa/Sebastian Kahnert
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Above all, quality problems at the wind power subsidiary led to large losses at the parent company Siemens Energy. By the end of September, Munich is therefore expecting a minus of up to 4.5 billion euros. In contrast, things are looking better in the other areas of the group.
Siemens Energy made a bigger loss in the fiscal third quarter than at any time since it was spun off from Siemens. Major problems at the wind power subsidiary Siemens Gamesa and negative tax effects caused a deficit of a good 2.9 billion euros, as the Munich-based group announced on Monday. According to the new forecast, Energy now expects a record loss of 4.5 billion euros for the fiscal year, which runs until the end of September.
The recent problems with the problem child Gamesa had already become known in June. At that time, Energy had given the burden of at least one billion euros and withdrawn its forecast. The details that have now been published are hitting the group hard: Due to the quality problems with onshore wind turbines, Energy expects costs of 1.6 billion euros for necessary repairs. They were booked in the past quarter, but the majority will only actually be incurred in the next two financial years.
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In the offshore area, the group expects further charges of EUR 0.6 billion from unprofitable contracts and difficulties in ramping up production. In addition to these charges at Gamesa, there is now also a negative tax effect at group level of a further 0.7 billion euros.
The results showed “the challenges in the turnaround of Siemens Gamesa,” said CEO Christian Bruch. The performance of the other business areas gives him “confidence in the ability of our company to set up business successfully again”.
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Away from Gamesa, Energy fared much better. The other three areas, Gas Services, Grid Technologies and Transformation of Industry, were able to improve their results compared to the same period of the previous year. And at Group level, incoming orders and sales also increased.
Siemens Energy was spun off from Siemens in 2020 and taken public. Since then, the group has not closed a fiscal year and only a few quarters with a profit. Again and again, problems with Gamesa caused profit warnings and pushed the numbers deep into the red. In order to get a better grip on the problem child, Energy has now completely taken over its wind power subsidiary, which was only a majority stake for a long time. The future of CEO Bruch is likely to depend on whether and how quickly the problems are solved.
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