MUNICH (dpa-AFX) - Siemens Energy appears to be back on track after
pushing through a restructuring of its troubled wind power
subsidiary, Gamesa.

The German energy technology company reported positive quarterly
earnings on Wednesday, and dramatically raised its profit forecast
for the remainder of the current year.

The company, which split off from German engineering giant Siemens in
2020, has struggled with losses in the wind power subsidiary and has
been forced to issue numerous profit warnings in its relatively short
history.

But Wednesday's report indicated that Siemens Energy made a
bottom-line profit of ?108 million ($116 million) between January and
March. That result is a major improvement over the loss of ?189
million the company reported in the same quarter of last year.

Turnover rose by 3% to ?8.3 billion, the company said.

A restructuring plan for Gamesa is in place, according to the
company, and expected to help stem losses there and bring the
division back into the black by 2026.

The improved quarterly results reflect 'the continued strong demand
for our energy transition technology as well as initial successes in
stabilizing the wind business,' said Siemens Energy chief executive
Christian Bruch. 'Against the backdrop of this positive development,
we have raised our outlook.'

The company had previously forecast growth in turnover during 2024 of
3% to 7%, but raised those expectations to 10% to 12%. That change
adds billions in expected revenue.

Margins are also expected to be somewhat more favourable.

Siemens Energy, however, left its annual bottom line profit target
unchanged at ?1 billion.


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