BERLIN, Nov. 15 (Xinhua) -- Siemens Energy on Wednesday posted a record net loss of 4.6 billion euros (5 billion U.S. dollars) in the fiscal year 2022-2023 due to quality issues with its wind power subsidiary Gamesa.
At the same time, revenues of the spinoff of German tech giant Siemens increased by 9.9 percent year-on-year to 31.1 billion euros. Except for Siemens Gamesa, all divisions contributed to this growth.
"For our underperforming wind business all eyes must be on cost-out, selectivity and acceleration of productivity, while continuously working on the remediation," Christian Bruch, president and chief executive officer (CEO) of Siemens Energy, said in a statement.
Problems at Siemens Gamesa will continue to impact profitability, the company said. Reaching the break-even point for its wind business remained a "major challenge" and is not expected in fiscal year 2026.
To help the company fulfill its large order volume, the German government on Tuesday provided guarantees worth 7.5 billion euros. According to the Ministry for Economic Affairs and Climate Action, this is part of a 15-billion-euro deal agreed with banks and stakeholders.
For the current 2023-2024 fiscal year, Siemens Energy expects net income of up to 1 billion euros despite further losses at its wind power subsidiary. The company's "vital role in the energy transition will continue to drive our growth and success in the years ahead," Bruch said.
Following the announcement, shares of Siemens Energy rose by more than 4 percent, making the company one of the biggest winners in Germany's blue-chip DAX index during midday trading on Wednesday. (1 euro = 1.09 U.S. dollars) ■