Siemens Energy shares drop 30% on wind turbine problems

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Siemens Energy has scrapped its profit outlook for the year amid mounting problems at its wind turbine unit Siemens Gamesa.

The company said it was expecting “significantly higher costs”, potentially above €1bn, following a review into “failure rates of wind turbine components”.

“The potential magnitude of the impact leads us to withdraw the profit assumptions for Siemens Gamesa and consequently the profit guidance for Siemens Energy Group for fiscal year 2023,” it said in a statement late on Thursday.

Siemens Energy took full control of Siemens Gamesa this month to try to turn the business around.

Siemens Energy’s shares fell almost 30 per cent as the market opened in Frankfurt on Friday, to €16.60.