Siemens Gamesa has recorded a €434m loss in its fiscal first quarter of 2024.
The deficit compares to a €823m loss in the same period in 2023.
Parent Siemens Energy pointed out the result was an improvement but said the red ink was driven by project margins burdened by higher planned costs due to the known quality issues in its onshore unit.
The company also said increased product costs and ramp-up challenges in the offshore area are to blame.
Orders were slightly above the prior year quarter’s on a comparable basis as offshore and service businesses reported clear and significant increases.
However, onshore orders more than halved, largely due to a temporary interruption of sales activities for the 4.X and 5.X onshore turbines.
Revenue meanwhile grew moderately to €2bn based on increased service revenue which more than offset a decline in the onshore and offshore businesses, the company said.
Siemens Energy delivered €208m of profit, turning around a loss of €282m last year.
“The solid first quarter is encouraging, in part also due to project shifts, which are normal in plant engineering, especially with the market dynamics we are currently seeing. That is why our focus remains on solving the quality problems in our onshore wind business and making the most of the growth potential for the rest of the company”, said chief executive Christian Bruch.