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MADRID (Reuters) -Siemens Gamesa confirmed a gloomy outlook for a potentially negative full-year profit margin on Thursday, a day after the world’s largest maker of offshore turbines named a new chief executive to try to revive its fortunes.
The Spanish firm blamed a first-quarter operating loss of 309 million euros ($349 million) on supply chain disruptions and costs, and problems at its onshore division.
Under its most optimistic predictions, the company expects its core profit margin could reach 1% this year.
On Wednesday, it named Jochen Eickholt, managing director of German parent Siemens Energy as CEO, tasking him with turning around the business after the departure of Andreas Nauen.
Profit margins at wind turbine makers including Danish market leader Vestas have been squeezed by rising costs for raw materials such as steel. Siemens Gamesa’s woes have been compounded by delays rolling out a new onshore turbine.
Siemens Energy has grown increasingly frustrated after a series of profit warnings from northern Spain-based Siemens Gamesa.
People familiar with the matter told Reuters after the most recent outlook cut in late January that the German company had stepped up efforts to take more control, including exploring the possibility of acquiring the 33% stake in Siemens Gamesa it does not already own.
The turbine unit’s Frankfurt-listed shares rose 2.1% on Wednesday after the new CEO was announced.
($1 = 0.8852 euros)
