Siemens Energy experienced a notable surge in its shares, climbing by 12% on Wednesday, following the announcement of an improved forecast for the year and changes in leadership within its wind turbine division.
The firm disclosed that Jochen Eickholt, the current CEO of Siemens Gamesa, the troubled wind turbine unit, would step down from his position by mutual agreement on July 31. He will be succeeded by Vinod Philip.
Siemens Energy CEO Christian Bruch acknowledged Eickholt’s efforts in laying the groundwork for the necessary restructuring and revitalization within Siemens Energy, despite the challenges faced by Siemens Gamesa. Bruch emphasized that the quality issues encountered were not under Eickholt’s tenure as CEO.
Siemens Gamesa initiated comprehensive restructuring efforts and strategic steps aimed at enhancing operating margins.
The company revised its forecast for the year, citing robust demand for power grid equipment and notable progress in stabilizing the wind business. It now anticipates a comparable revenue growth between 10% and 12% for the full year, with a profit margin before special items ranging from negative 1% to positive 1%.
Siemens Energy endured a challenging 2023 due to manufacturing faults at Gamesa, resulting in a significant loss for the fiscal year. An investigation into quality issues was initiated within the wind turbine division.
Despite the setbacks, Siemens Energy reported a net income of 108 million euros for the last quarter and expressed optimism regarding stronger growth and positive cash development moving forward.
