Siemens Energy 3Q Rev EUR7.51B

By Giulia Petroni

Siemens Energy lowered its outlook for fiscal 2023 due to mounting challenges at its wind-turbine business that will cost 2.2 billion euros ($2.4 billion).

The German energy company on Monday said it now expects to book a net loss of around EUR4.5 billion for its fiscal year, while its profit margin before special items is seen at between minus 10% and minus 8%.

Comparable revenue growth is expected to be in a range of 9% to 11%, while free cash flow before tax is expected to be up to a negative low triple-digit million amount.

Siemens Gamesa said challenges at its wind-turbine business are mainly due to quality issues of the 4.X and 5.X onshore platforms, with expenses amounting to EUR1.6 billion, as well as increased product costs and ramp-up challenges in the offshore business, leading to additional charges of EUR600 million.

Siemens Energy booked a quarterly net loss EUR2.93 billion in the period ended June 30 compared with a loss of EUR564 million in the prior year, while the loss before special items amounted to EUR2.05 billion, driven by charges at Siemens Gamesa.

Revenue rose to EUR7.51 billion in the third quarter from EUR7.28 billion, while orders jumped to EUR14.89 billion from EUR9.84 billion, mainly boosted by higher volume from large orders.

Write to Giulia Petroni at [email protected]

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