Siemens Gamesa booked a multi-billion euro loss in its fiscal third quarter due to higher than expected charges associated with its onshore turbines.
The manufacturer recorded a deficit of almost €2.6bn in the last three months, compared to a loss of €400m in the year-ago period.
The margin was -124.7% for the quarter, compared to -16.6% on revenue of just over €2bn, down from €2.4bn.
The company said it booked charges of €2.2bn, which included €1.6bn related to quality issues of certain onshore platforms.
“Following a substantial increase in failure rates of certain wind turbine components, an extended technical review suggested that significantly higher costs will be incurred than previously as-sumed to reach the targeted quality level,” it said.
“The other charges mainly relate to increased product costs and ramp-up challenges in the offshore business.”
The financial woes dragged down parent Siemens Energy, which fell to a loss of almost €2.1bn, compared to €481m for the year-ago period.
The turbine company expects to record a total loss for the year of around €4.5bn.
“In addition to the aforementioned charges, the assumptions for Siemens Gamesa reflect lower profit contributions from the execution of its current order backlog mainly related to increased product costs and continued ramp-up challenges in the offshore activities,” said Siemens Energy.