On Monday, Siemens Energy (ENR1n.DE), a power sector supplier, said its wind turbine segment remained under pressure and expected to hit the lower end of its profit margin target this year.
“Our adjusted outlook reflects the strong demand, as well as the continuous challenging market environment in the wind industry,” stated CEO Christian Bruch.
Due to Siemens Gamesa’s 374 million euro ($412 million) second-quarter loss, the group expects its profit margin before exceptional items to fall below its 1%-3% target range.
Siemens Energy blamed supply chain challenges, offshore activity ramp-up, and loss-making legacy contracts at the Spanish wind turbine maker.
Siemens Energy’s order backlog touched a record 102 billion euros, and the business upped its sales projection to 12% in 2023 due to faster-than-expected market growth.
“All in all, (there is) some for the bulls and some for the bears,” a Frankfurt-based trader said, adding that Siemens Gamesa’s poor performance should initially weigh on shares.
Thanks to its gas services and grid technologies units, Siemens Energy made 41 million euros before special items in the second quarter, compared to a 49 million euro loss last year.
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