Siemens Energy, Gamesa Shares Fall on 2Q Challenges

   By Cristina Roca 
 

Shares in Siemens Energy AG and its wind-energy subsidiary Siemens Gamesa Renewable Energy SA traded lower on Wednesday after the companies said their second-quarter results were dragged by a spate of challenges.

At 0750 GMT, shares in Germany's Siemens Energy were 4.9% lower at EUR18.61, while Siemens Gamesa shares were down 1.9% at EUR15.13.

Siemens Energy, which is 35% controlled by Siemens AG, swung to an adjusted loss before interest, taxes, and amortization in the quarter ended March 31, according to preliminary results released late Tuesday.

It said it is reassessing its guidance after Madrid-listed Siemens Gamesa, in which it controls 67%, scrapped its full-year outlook.

Gamesa said late Tuesday that its second-quarter performance was severely hit by product and execution issues.

The wind-turbine maker is seeing more headwinds from its 5X platform ramp-up process as well as pressure on energy, commodities and transportation costs, lack of availability of key turbine components, and harbor congestions, Jefferies analysts said in a note, describing Gamesa's results as frustrating.

Parent Siemens Energy said the war in Ukraine has also hit revenue and profitability and aggravated existing supply-chain constraints. It said it couldn't put a figure on the potential hit for the remainder of its fiscal year amid uncertainty over sanctions on Russia.

Write to Cristina Roca at [e-mail]

(END) Dow Jones Newswires

April 20, 2022 04:06 ET (08:06 GMT)

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