Wind turbine manufacturer Siemens Gamesa remains a loss-maker for Siemens Energy. The energy technology group once again lowered its earnings forecast for the current financial year 2022/23 (as of the end of September) and expects higher losses. The consolidated loss after tax is likely to exceed the previous year's level of 712 million euros by up to a low three-digit million amount, the company announced on Monday in Munich.

Previously, Siemens Energy had expected a deficit at the previous year's level. The adjusted operating margin is now expected to be in the lower range of the targeted 1 to 3 percent. It is already the second forecast cut this year.

Siemens Energy, on the other hand, was much more optimistic about revenue development and expects comparable growth of 10 to 12 percent, instead of the previously forecast 3 to 7 percent. This excludes currency and portfolio effects.

Operating profit in the second quarter

The power technology group recorded robust growth in the second fiscal quarter, increasing its revenue from 6.6 billion to 8 billion euros, more than analysts had expected in advance. Comparable growth was 23.8 percent. Incoming orders also rose significantly: by more than half on a comparable basis to just under 12.3 billion euros – also stronger than expected.

While the power technology businesses were able to significantly improve their results, Siemens Gamesa continued to be in the red, with adjusted operating loss rising by around a quarter to €374 million. Earnings continued to be impacted by supply chain issues, loss-making projects and the ramp-up of offshore wind energy activities.

Nevertheless, Siemens Energy was able to return to profitability in terms of operating profit thanks to the good development in power technology. Before special items, this amounted to EUR 41 million, compared with a loss of EUR 49 million in the previous year. Analysts had repeatedly assumed that they were in the red. After taxes, however, there was still a loss: it fell by a good quarter to 189 million euros.