2023-06-23 14:50:19
Last Wednesday was the start of summer on the calendar. But summer is already in full swing. On Thursday, a storm front over Germany provided a welcome cooling – at least for a short time. On the other hand, the storm that broke out over the wind turbine manufacturer Siemens Energy on Thursday was not very welcome.
The Dax lost 2.9 percent by Friday afternoon and slipped back below the psychologically important 16,000 point mark on Thursday. No reason to worry, say analysts. Capital market strategist Jürgen Molnar from Robomarkets estimates that it will be difficult to climb above this important mark again.
The reasons for the weakness of the leading German index, in addition to a few warnings of falling profits, are also the prospect of further interest rate hikes by many central banks. “Hopes for an imminent rate cut have burst like a soap bubble,” said Christian Henke from broker IG. The Fed had signaled further interest rate hikes after its interest rate pause in June. On Thursday, the Bank of England, the Norwegian, Turkish and Swiss national banks increased their interest rates.
The ECB economists are currently negotiating the further interest rate. Several members of the Governing Board are expecting another rate hike in July. ECB Executive Board member Isabel Schnabel even advocates “it is better to do too much than too little”. In the worst case, this is easier to correct than the other way around. On the other hand, she was concerned about the discrepancy between perceived and real inflation. This could affect people’s inflation expectations.
A “black hole” in the Siemens Energy balance sheet
The hopes of Siemens Energy shareholders have also been dashed. On Thursday, the company dropped the earnings forecast due to significant difficulties in the wind power business. As a result, the share price fell by up to 37 percent on Friday, the biggest drop in the company’s history. This slump destroyed 6.3 billion euros in market value within a very short time. Until Thursday, Siemens Energy was still one of the biggest Dax winners in 2023 with a plus of 33 percent since the beginning of the year. “Gamesa was completely taken over at the beginning of the year, but so far it has proved to be a black hole in the balance sheet,” judged Jürgen Molnar from Robomarkets.
SIEMENS ENERGY AT NA ON
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The wind turbine subsidiary of Siemens Energy has had technical problems with certain components of the wind turbines for a long time. A technical review of the turbine inventory found that quality defects in some onshore wind turbines are greater than previously thought. “The quality problems go well beyond what was previously known,” said Siemens Gamesa boss Jochen Eickholt. According to the company, fixing these will result in additional costs of around one billion euros. Among other things, rotor blades and bearings are affected. “The setback is more severe than I would have thought possible,” said Siemens Energy boss Christian Bruch on Friday.
Daniel Mohr Published/Updated: , Recommendations: 8 Marcus Theurer Published/Updated: , Recommendations: 12 Ilka Kopplin Published/Updated: , Recommendations: 3
The bad news at Siemens Energy made the whole industry nervous. The papers of the plant manufacturer Nordex lost 7.5 percent on Friday morning, but caught up again after a short time. The Danish manufacturer Vestas also lost 6 percent at the top. The price crash also left its mark on the former parent company, which still holds a good third of the shares: Siemens shares fell by almost three percent on Friday.
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