Siemens Gamesa Renewable Energy delivered another cut to its earnings forecast, the latest sign of the headwinds hurting an industry vital to combat global warming and solve the energy crisis.
The cut in the expected earnings margin announced on Tuesday is yet another update to the wind turbine maker’s declining outlook. The industry is facing surging commodity costs and supply chain disruptions, just as governments plan to rely more heavily on renewable energy to move away from fossil fuels.
Siemens Gamesa said its margin on earnings before interest and tax and before power purchase agreements and other costs will be -5.5% for the full fiscal year, down from a previously announced -4%, according to its third quarter earnings statement.
The fresh forecast comes just as the company is overhauling operations amid a full takeover by parent company Siemens Energy.
In addition to the problems dogging the wider industry, the firm also struggled to deliver a new turbine because of design and manufacturing issues, while costs are mounting to pay for failing components and repairs to existing units.
Siemens Gamesa shares were little changed on Tuesday, hovering just below the 18.05 euros per share offer that Siemens Energy made earlier this year to acquire the remaining 33% it doesn’t already own. Competitor Vestas Wind Systems A/S, which reports next week, fell as much as 4.7% before paring losses.
Siemens Gamesa also outlined a new company structure that Chief Executive Officer Jochen Eickholt said will help drive a turnaround. The model will put responsibility for manufacturing and supply chains for both the onshore and offshore businesses under the direction of the chief operating officer. The company will also create a chief technology officer position to streamline development of all its business segments.
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