Energy
Wednesday, May 8th, 2024 5:22 pm EDT
Key Points
- Siemens Energy shares surged by up to 13% after the company raised its forecast for the year and announced the replacement of the CEO of its troubled wind turbine unit, Jochen Eickholt, who will be succeeded by Vinod Philip on July 31.
- Siemens Energy CEO Christian Bruch emphasized Eickholt’s role in initiating restructuring measures and stated that the quality problems at Siemens Gamesa did not occur during Eickholt’s tenure, as comprehensive restructuring measures were being implemented to enhance operating margins.
- Strong demand for power grid equipment and stabilization of the wind business prompted Siemens to raise its forecast, expecting comparable revenue growth between 10% and 12% and a profit margin before special items between negative 1% and positive 1% for the full year. Despite challenges, Siemens Energy reported a net income of 108 million euros for the last quarter and remains optimistic about stronger growth and positive cash development.
Siemens Energy witnessed a significant surge in its shares by up to 13% following the announcement of an improved forecast for the year and a leadership change in its troubled wind turbine unit. Jochen Eickholt, the CEO of Siemens Gamesa, will step down from his position on July 31 and be succeeded by Vinod Philip. Siemens Energy CEO Christian Bruch emphasized Eickholt’s role in initiating essential restructuring measures amid challenges within Siemens Gamesa, stating that the quality problems did not occur during Eickholt’s tenure. Siemens Gamesa has embarked on comprehensive restructuring efforts and long-term strategic development to enhance operating margins. The company’s successful stabilization of the wind business and strong demand for power grid equipment prompted Siemens to revise its full-year forecast, expecting comparable revenue growth between 10% and 12% and a profit margin before special items between negative 1% and positive 1%. Despite closing up 12.8%, Siemens Energy still faces quality issues in its wind division, which Bruch acknowledged while expressing confidence in the ongoing operational turnaround. The company plans to focus more on offshore wind operations, aiming to address manufacturing faults that led to a 4.6 billion euro loss in the previous fiscal year. Despite challenges, Siemens Energy reported a net income of 108 million euros for the last quarter and remains optimistic about stronger growth and positive cash development.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/08/siemens-energy-changes-leadership-at-embattled-wind-turbine-unit-.html
