Because of the Ukraine war, the business environment for Siemens Energy has become more challenging.
(Photo: dpa)
Berlin Siemens Energy is putting its full-year targets to the test. Earlier, wind turbine division Siemens Gamesa reported unexpectedly major operational problems and rising costs, resulting in a hefty quarterly loss. In addition, Siemens Energy stated on Tuesday evening that the general conditions for business activities had become more challenging due to the war against Ukraine and the sanctions against Russia. “Due to the dynamic development of the sanctions, the Management Board cannot yet fully assess the potential effects for the rest of the financial year and cannot rule out further negative effects on sales and profitability,” it said.
So far, Siemens Energy has expected a margin on adjusted earnings (EBITA) before special items in a range of two to four percent for 2022. Sales should develop in a range of minus two to plus three percent.
Start-up difficulties of onshore turbines
The company cited Siemens Gamesa as the reason for reviewing the outlook. Siemens Gamesa had previously cited teething problems for its next-generation onshore turbines, which are more complex than previously thought.
Siemens Gamesa also blamed “further pressure on energy, raw material and transport costs, the availability of key turbine components, port congestion and delayed customer investment decisions” for the €304 million operating loss in the second quarter.
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Siemens Gamesa boss Jochen Eickholt said management is now working on a turnaround program. Eickholt is a former board member of Siemens Energy and took over the management of the wind turbine manufacturer in March to get the company on track.
Siemens Energy’s order intake fell by 27.5 percent to 7.9 billion euros in the second quarter. The bottom line was an adjusted loss (adjusted EBITA before special items) of 21 million euros, after a profit of 288 million euros in the previous year.
More: Siemens Energy boss: “If we immediately exit Russian gas, the effects will be dramatic”
