Via Siemens Energy Investor Relations
Following the substantial increase in failure rates of wind turbine components, the board of Siemens Gamesa initiated an extended technical review of Siemens Gamesa’s installed fleet and product designs.
The current status of the technical review suggests that in order to reach the targeted product quality of certain Onshore platforms, significantly higher costs will be incurred than previously assumed. Potential quality related measures and the associated costs are currently under evaluation and are likely to be in excess of 1 bn Euro.
Siemens Energy is also reviewing assumptions critical to the existing business plans given productivity improvements are not materializing to the extent previously expected. In addition, the company continues to experience ramp up challenges in Offshore.
It is too early to have an exact estimate of the potential financial impact of the quality topics and to gauge the impact of the review of those assumptions on the company's business plans.
However, based on the initial assessment, the potential magnitude of the impact leads the company to withdraw the profit assumptions for Siemens Gamesa and consequently the profit guidance for Siemens Energy Group for fiscal year 2023.
The overall company will maintain revenue guidance for the Group as well as all assumptions for Gas Services, Grid Technologies and Transformation of Industry. Further details and quantification will be provided in the context of the regular disclosure for the 3rd quarter of fiscal year 2023.
Siemens Gamesa was fully integrated into Siemens Energy earlier this year. Siemens Gamesa has a nacelle facility in Hutchinson.
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