Siemens Energy has withdrawn profit guidance for Siemens Gamesa after disclosing on Thursday night that the troubled manufacturer’s onshore unit will likely book additional costs of over €1bn associated with quality issues.
The “significantly” higher hit “than previously assumed” is being taken “to reach the targeted product quality of certain onshore platforms”, the German company said.
“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 our assumptions on our business plan,” said Siemens Energy.
“However, based on our initial assessment as of today, the potential magnitude of the impact leads us the withdraw the profit assumptions for Siemens Gamesa.”
The company said productivity improvements across the company are also not “materialising to the extent previously expected” while offshore “continue(s) to experience ramp up challenges”.