MUNICH, Germany — As part of a press release on Wednesday to end Siemens Energy's fiscal year, the company noted that Siemens Gamesa's struggles earlier in 2023 have caused overall issues for the company.
"The wind business remains a major challenge and has led to the net loss in 2023," the release said. "In the past financial year, Siemens Gamesa suffered an unexpected, serious setback. Charges for quality issues in the onshore business, increased product costs and ramp-up challenges in the offshore business severely impacted the results for the fiscal year 2023 and will continue to impact the Group's profitability in the near to mid-term. Break-even at Siemens Gamesa is now expected in fiscal year 2026.
"However, the wind subsidiary is also making progress. The technical analysis of the quality issues for the onshore platforms 4.X and 5.X is almost complete and the results so far confirm what was communicated in August 2023. No further provisions in these fields have been made since the Q3 announcement. Remedial actions have been defined and mitigation and corrective actions are under development. Siemens Gamesa has still suspended the commercial activities on the 5.X platform and is defining a timeline and approach to set out how and when to resume sales with a design incorporating the respective corrective measures.
"In the offshore sector, Siemens Gamesa is focusing on ramping up its factories and new product generation as well as executing its order backlog. Output has been significantly increased compared to the fiscal year 2022. To help achieve the turnaround, and return Siemens Gamesa to profitability, the scope of Siemens Gamesa’s activities is currently reviewed."
More details will be revealed on Capital Market Day on November 21.
The loss before special items is around $3 million.
Siemens Gamesa has a nacelle facility in Hutchinson.
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