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Following the substantial increase in failure rates of wind turbine components, the board of Siemens Gamesa initiated an extended technical review of Siemens Gamesa's installed fleet and product designs.
The current status of the technical review suggests that in order to reach the targeted product quality of certain onshore platforms, significantly higher costs will be incurred than previously assumed. Potential quality related measures and the associated costs are currently under evaluation and are likely to be in excess of € 1 billion.
The company is also reviewing assumptions critical to the existing business plans given that productivity improvements are not materialising to the extent previously expected. In addition, they continue to experience ramp-up challenges offshore.
It is too early to have an exact estimate of the potential financial impact of the quality topics and to gauge the impact of the review of the company’s assumptions on its business plans. However, based on the initial assessment, the potential magnitude of the impact leads them to withdraw the profit assumptions for Siemens Gamesa and consequently the profit guidance for Siemens Energy Group for fiscal year 2023.
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