Siemens Energy reports new losses in the renewable energy business

Siemens Gamesa

The German-Spanish turbine manufacturer is deep in crisis.

(Photo: Siemens Gamesa)

Munich The Dax group Siemens Energy again has to cope with high losses in the renewable energies business. The wind power subsidiary Siemens Gamesa reported on Thursday evening for the first quarter of its fiscal year 2022/23 (ending September 30) an operating loss before special items of 760 million euros.

An inventory of the existing fleet resulted in higher charges for guarantees and service, it was said, among other things, as a reason. The turnover was two billion euros.

Siemens Gamesa has been in crisis for years. Again and again, the wind power group surprised the parent company in Munich with forecasts revised downwards and new burdens. In the past fiscal year, Siemens Gamesa made a net loss of almost one billion euros.

Siemens Energy wants more crackdown on the crisis subsidiary

In order to be able to take better action, Siemens Energy decided to fully integrate the subsidiary. With the help of a multi-billion takeover bid, Siemens Energy secured 93 percent of the shares and decided to take the company private.

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The current losses are the result of the inventory by the new Gamesa boss Jochen Eickholt, who was sent from Munich to Madrid last year as a reorganizer. Because of his impatience, he is known internally as “Two-Week Jochen”.

The troubles at Siemens Gamesa regularly masked progress in other Siemens Energy businesses. The “Gas and Power” division, which was still considered an eternal restructuring case when it went public, kept revenues stable on a comparable basis at a good 19 billion euros in the past financial year. What’s more: incoming orders increased by a quarter to almost 27 billion euros. The adjusted operating return on sales was three percent, a solid figure.

More: Significantly more wind turbines were built in Europe in 2022.

Handelsblatt energy briefing

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