(News Bulletin 247) – Siemens Energy announced yesterday evening that it had given up on its objectives for the current financial year due to the growing difficulties encountered by its renewable energy subsidiary, Siemens Gamesa.
The action fell more than 32% in the early morning on the Frankfurt Stock Exchange, compared with a decline of 0.7% for the DAX index.
In a press release, the German group explains that the high rate of failure observed on the components of the wind turbine activity of Siemens Gamesa led the management of the entity to extend the technical examination relating to the quality of the fleet and of the product portfolio.
In order to achieve the targeted level of quality, particularly with regard to offshore wind turbines, additional costs, estimated at more than one billion euros, will have to be accounted for, explains the company.
Siemens Energy, which indicated last month that it was aiming for like-for-like revenue growth of between 10 and 12% over the full year, said the latter objective remains intact.
On the other hand, the group says it has withdrawn its forecast of an increase in its annual profit before exceptional items located in the lower limit of a range ranging from 1% to 3%.
Siemens, which owns 32% of Siemens Energy, was also impacted by this announcement, the title of the industrial conglomerate yielding approximately 2% in the first exchanges.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
