Siemens Energy cuts outlook for third time this year

A trader walks next to Siemens Energy AG logos during Siemens Energy's initial public offering IPO at the Frankfurt Stock Exchange in Frankfurt, Germany on September 28, 2020. REUTERS Ralph Orlowski File Photo

FRANKFURT, Jan 20 Reuters -- Siemens Energy ENR 1 n. DE cut its outlook after Siemens Gamesa warned of long supply chain issues, increasing pressure on the German firm to take over the unit in order to get a better handle on its problems.

Siemens Energy, which holds 67% in Siemens Gamesa, said it now expects a margin on adjusted earnings before interest, tax and amortisation EBITA before special items in a range of 2% to 4% in 2022, down from 3% to 5% previously.

The German parent, who has little influence on the separately listed subsidiary, was hit with an announcement on Wednesday after Siemens Gamesa slashed its outlook for the third time in less than nine months.

Siemens Gamesa said in a statement that the performance was negatively impacted by supply chain disruptions, which are now expected to last longer than previously anticipated, and are further affected by the continued impact of the COVID-19 pandemic.

Siemens Gamesa's onshore division has been troubled for some time, due to ramp-up issues around a new class of turbines - but recent progress has led Christian Bruch, CEO of its parent, to be more hopeful. The latest profit warning will trigger new demands on Bruch to buy the remaining stake in Siemens Gamesa, worth around 4.3 billion euros $4.9 billion, or seek other ways to speed up the turnaround.

According to preliminary figures, Siemens Gamesa's loss before interest and tax before purchase price allocation and integration restructuring costs came in at 309 million euros in the first quarter.

This resulted in an adjusted loss before interest, tax and amortisation and special items of 63 million euros for Siemens Energy, which also makes gas turbines in the same period, compared to a 366 million profit last year.