(News Bulletin 247) – The group’s title plunges as the company has abandoned its profitability target for the current financial year. Blame it on problems with its Spanish subsidiary, Siemens Gamesa.

It’s a dizzying fall. The German energy supplier Siemens Energy collapsed on the Frankfurt Stock Exchange, weighed down by difficulties in wind power. Around 9:30 a.m., the company’s stock fell nearly 30%, with a market capitalization of 18 billion euros, the plunge thus engulfing nearly 8 billion euros.

The plunge in the title of Siemens Energy in Frankfurt is unprecedented since the bankruptcy of the payment provider Wirecard in June 2020, according to AFP.

The company has announced that it has abandoned its profitability target for the 2023 financial year, following problems encountered by its Spanish subsidiary Siemens Gamesa, which specializes in the construction of wind turbines.

Component issues

“Following the substantial increase in wind turbine component failure rates, Siemens Gamesa’s Board of Directors has initiated a thorough technical review of Siemens Gamesa’s installed fleet and product designs,” the company said in a statement. a statement.

“The current state of technical review suggests that achieving the targeted product quality for certain terrestrial platforms will require significantly higher costs than previously anticipated,” the company continues. “The potential quality-related measures and the associated costs are currently being assessed and are expected to exceed 1 billion euros,” she adds.

“We are also in the process of reviewing assumptions critical to existing business plans, given that productivity improvements are not materializing to the extent previously anticipated. In addition, we continue to experience ramp-up challenges in offshore (marine wind power, editor’s note)”, explains the company again.