The specialist for renewable energies repeatedly surprises the parent company Siemens Energy with bad news.
(Photo: Reuters)
Munich Siemens Energy is falling deep into the red again because of the ongoing problems at wind power subsidiary Siemens Gamesa. In the second quarter of 2021/22, which ended on September 30, the group posted a loss after tax of 252 million euros. In the same period last year, Siemens Energy recorded a small profit of 31 million euros.
The decisive drivers are the problems at the wind power subsidiary Siemens Gamesa, in which Siemens Energy holds two thirds. The situation at the wind power subsidiary has worsened since the last profit warning, said CEO Christian Bruch on Wednesday. “As the majority shareholder, we make our expertise available to get to the bottom of the causes and to solve the problems.”
For the year as a whole, Siemens Energy now expects a loss at the previous year’s level, when the minus was 560 million euros. So far, the Siemens spin-off had promised a very strong improvement. When it comes to forecasting operating profit and revenue, Siemens Energy expects to end up at the lower end of the range.
Siemens Energy has been faced with an almost paradoxical situation for some time. The Gas and Power division with the power plants, which has been under structural pressure for many years, is developing very solidly. On the other hand, Siemens Gamesa, which actually stands for the future of the group, regularly surprises the headquarters in Munich with bad news.
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On the one hand, this is due to home-grown problems, especially when starting a new generation of turbines. Added to this are the structural challenges in the industry, in which no provider is currently making money.
Siemens Energy had already presented key data for the second quarter of 2021/22. Sales fell by almost two percent on a comparable basis to 6.6 billion euros. The adjusted operating result slipped into the red with a loss of 77 million euros.
Siemens Energy had forecast an adjusted operating return on sales (EBITA) before special items in a range of two to four percent for 2021/22. Sales should develop in a range of minus two to plus three percent.
The problems at Siemens Gamesa are an ongoing topic. Since the merger of Siemens Windkraft with its Spanish competitor, the new company has repeatedly surprised the parent company in Munich with profit warnings.
More: Wind power companies are in crisis
