Siemens Energy tones down profit outlook on wind sector challenges

Siemens Energy tones down profit outlook on wind sector challenges
# 15 May 2023 09:54 (UTC +04:00)

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, APA reports citing Reuters.

"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.

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