2023-11-15 08:31:39
The day after the federal government’s guarantee, Siemens Energy announced a record loss. Almost 4.6 billion euros in the past financial year are by far the largest loss in the young history of the energy technology group. The cause is the problems in the wind power business, which regularly wreak havoc on Energy’s balance sheet and which reached a peak in the last financial year. Although they continue to press, the Munich-based company expects a profit of one billion euros in the 2024 financial year, which has been running since October, thanks to sales.
However, the wind power business will continue to accumulate losses in 2024: before special effects, the group expects a loss of around two billion euros. The remaining businesses, on the other hand, are running solidly, but cannot compensate for the losses in the wind sector.
“In an extremely challenging year for Siemens Energy, two thirds of our businesses are growing profitably and have achieved or exceeded their annual targets,” emphasized CEO Christian Bruch. Things are different in the wind business. “All efforts here are focused on cost reduction, contract selectivity and productivity improvement, while we work in parallel to resolve the issues.”
7.5 billion euros guarantee from the federal government
Demand for Siemens Energy products remains high. In the past financial year, incoming orders were a good 50 billion euros, around a third higher than in 2022. The order backlog grew by a good seventh to 112 billion.
“The current high demand for our products also brings with it challenges,” said Bruch. “We are therefore pleased that, after very constructive discussions, we have found a good solution with everyone involved to ensure our growth, which has been greatly accelerated by the energy transition.”
Julia Löhr, Berlin Published/Updated: Recommendations: 8 A comment from Markus Frühauf, Munich Published/Updated: Recommendations: 6 Markus Frühauf Published/Updated: Recommendations: 106
On Tuesday, the Federal Ministry of Economics reported a breakthrough in the struggle for guarantees for Siemens Energy. The core is a federal government guarantee of 7.5 billion euros. The former parent company Siemens, private banks and other players are also on board. In total there are guarantees of 15 billion euros. In addition, Siemens Energy will sell 18 percent of the Indian company Siemens Limited to Siemens. So far, Energy still holds 24 percent of it as a result of its spin-off from the Siemens Group in 2020. The proceeds are said to be 2.1 billion euros.
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