Siemens Energy SMNEY reported first-quarter preliminary financial results above market expectations on Tuesday but kept its fiscal year outlook unchanged as it tackles issues in its onshore wind business.
Siemens Energy has had repeated setbacks at its Siemens Gamesa wind turbine business which led to questions over its strategy of trying to serve broad swathes of the utility sector.
“It is important that we do our homework quarter by quarter. In the wind business, this means solving the quality problems in the onshore segment, while for the remaining businesses it means utilizing the growth potential and achieving the targets we set ourselves,” a Siemens Energy spokesperson told Reuters.
“We are on the right track, but no more and no less,” they added.
Siemens Energy chairman Joe Kaeser told Reuters last week that the company had not found any new flaws in its newest onshore wind turbines since it last commented on the matter in November, saying “the worst is over.”
The company reported a 12.6 per cent rise in revenue on a comparable basis to 7.65 billion euros ($8.29 billion) and a profit margin before special items of 2.7 per cent, with order intake up 23.6 per cent.
Cash flow came in at negative 283 million euros because of the “expected high cash outflow at Siemens Gamesa,” the company said.
Full first-quarter earnings will be published on February 7.