Stock market crash – disappointment at Siemens Energy – economy

Other operational problems at the Spanish wind power subsidiary Siemens Gamesa are destroying the profit planning of Siemens Energy. As the wind turbine manufacturer has to reckon with operating losses for the second time in a row in the current 2020/21 fiscal year (end of September), the German parent company also falls short of its target of yield. The operating performance of sales before special items will remain below the target range of three to five percent, the energy technology group admitted. Siemens Energy shares listed in the flagship Dax index collapsed eleven percent. Shares of Siemens Gamesa, in which Siemens Energy owns the majority, fell to 18%; this year it has lost a third of its value. The bad news also sparked a massive sell-off of securities from other wind turbine manufacturers: Nordex and Danish company Vestas fell 4.9% and 6.4% respectively.

Siemens Gamesa CEO Andreas Nauen also said it could take a year longer for the company to hope to meet its targets. Nauen, who took over the management of Siemens Gamesa a year ago, no longer wanted to decide whether an operating margin of eight to ten percent could be reached by 2023 or not before 2024. Finished our homework, continue ”, a Nauen told analysts. Siemens Gamesa is grappling with sharply rising raw material prices for steel and copper, but also with problems of ramping up the new generation of turbines. In Brazil in particular, the corona pandemic is causing supply and execution issues that drive up costs, the company said. Operational problems and loss-making projects are nothing new for Gamesa. In 2019/20, the Spaniards were surprised by the winter when installing five large wind farms in Norway. Discussions with customers about the pass-through of high steel prices are difficult, Nauen said. “But it is clear that given the magnitude of the increases, we cannot sit back on them.” Siemens Gamesa no longer expects a profit for the current financial year. Sales will be in the lower end of the forecast range of 10.2 to 10.5 billion euros.

In view of these figures, the parent company will not meet the expectations of analysts in the third quarter, warned Siemens Energy. However, as expected, consolidated sales are expected to increase by 3-8% over the year; Siemens Energy had already made cuts in this area three months ago. In the traditional business of turbines for gas and coal power plants, everything is going according to plan, said Siemens Energy. The future of the group must rest above all on Siemens Gamesa.

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