Siemens Energy CEO Says 'Going Too Fast' With New Products As Wind Turbine Issues Cost Company $2.4B Loss

Siemens Energy SIEGY has reported a $2.4 billion loss due to wind turbine problems in the third quarter of 2023.

According to CNBC, CEO Christian Bruch announced that the company will slow down its new product rollouts following these quality issues.

"The quality problems really result from the past, but I think we have too fast rolled out platforms into the market," Bruch told CNBC's "Squawk Box Europe.”

"That is not a cost issue per se, that is really a quality issue in terms of going too fast with new products into the market. The other thing is obviously now stabilizing the business in terms of ramping up new factories."

The costs arose from the wind turbine subsidiary, Siemens Gamesa, which had scrapped its profit forecast in June and warned about continuous costly failures. The company’s shares fell sharply after this announcement.

The quality problems were tied to the company’s speedy market rollouts, according to Bruch. Siemens Energy’s net loss for the year is now estimated to be around 4.5 billion euros, worse than the initial expectations.

The company’s shares dropped approximately 5% in Frankfurt but later recovered, trading 2.6% higher. Despite the losses, Siemens Energy reported strong growth in orders and revenues, along with a record order backlog of 109 billion euros in its third-quarter report.

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