Siemens Energy tones down profit outlook on wind sector challenges

Siemens Energy (ENR1n.DE), 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 reasons for the ongoing problems.

At the same time, Siemens Energy’s order backlog hit a record at 102 billion euros and the group also raised its sales outlook due to faster-than-expected growth in its markets, now forecasting revenues to increase by up to 12% in 2023.

This report’s information was first seen on REUTERS; to read more, click this link.