Siemens Energy tones down profit outlook on wind sector challenges – EQ Mag

FRANKFURT : Siemens Energy, which supplies equipment and services to the power sector, expects to hit the lower end of its profit margin target this year, the company said on Monday, adding its wind turbine division remained under pressure.

“Our adjusted outlook reflects the strong demand, as well as the continuous challenging market environment in the wind industry,” Chief Executive Christian Bruch said.

The group said it now expects its profit margin before special items to come in at the lower end of its 1%-3% target range, pointing to a 374 million euro ($412 million) second-quarter loss at its Siemens Gamesa division.

Siemens Energy cited supply chain issues, the ramp-up of offshore activities as well as loss-making legacy contracts at the Spanish-based wind turbine maker as the reason for the ongoing problems.

Siemens Energy still swung to a profit before special items of 41 million euros in the second quarter, helped by its other divisions – including gas services and grid technologies – compared with a 49 million euro loss in the same period last year.

($1 = 0.9084 euros)

Source: Reuters