Siemens Energy reports a massive loss of 240 million Euros

Siemens Energy

Siemens Energy posted a 240 million euro ($274 million) first-quarter net loss on Wednesday, primarily due to the faltering wind turbine unit Siemens Gamesa, which has become a burden on the parent company after three profit warnings. 

Christian Bruch, the company’s CEO, stated that the company would continue to assist turnaround efforts.

Siemens Gamesa revealed unexpected supply chain concerns and relatively high ramp-up costs for a new turbine generation shortly after Siemens Energy reported the majority of its quarterly results last month, forcing it to lower its guidance.

Siemens Energy, a company that makes turbines and provides services to the power industry, predicted that supply chain challenges would endure in 2022. Last year at this time, the company had a net profit.

Siemens Energy, which was spun out from Siemens AG (SIEGn) in 2020, has lost 15% of its value this year, trailing the market by 4%. Siemens Gamesa’s stock has dropped by 23%.

Analysts believe that Siemens Energy was speeding up its efforts to acquire the remaining third of Siemens Gamesa that it does not already hold, giving the company the level of control it needs to accelerate the turnaround.

Despite a chronic worldwide chip shortage, Honda Motor Co upped its full-year operational outlook on Wednesday, aided by cost cuts and a weak yen.

It raised its current operating profit target to $7 billion. However, due to chip shortages, Honda, like other automakers, has had to scale back production plans.

On Wednesday morning, Asia Pacific stocks were higher. Investors are paying attention to the Federal Reserve’s tightening monetary policies.

By 3:09 a.m. GMT, the Nikkei 225 had gained 0.92 percent. The KOSPI index in South Korea increased by 0.67 percent. The Hang Seng Index in Hong Kong was up 1.86 percent. The ASX 200 index in Australia increased by 0.57 percent.

April gold futures were up 0.27 percent, or 5.00, to $1826.80 a troy ounce. Meanwhile, March crude oil dipped 1.69 percent, or 1.54, to $89.78 per barrel. The US Dollar Index Futures were trading at 95.597, up 0.21 percent.

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