May 5, 2021

File Photo: Siemens Energy

File Photo: Siemens Energy

Siemens Energy, which supplies turbines to the power sector, on Wednesday lowered the upper end of its target range for 2021 sales, hurt by weaker-than-expected demand, project delays, and the ongoing coronavirus crisis.

Revenues are now expected to grow 3-8% in the year to September, compared with a previous range of 2-12%. According to Refinitiv estimates, sales are expected to grow 6% to 29.1 billion euros ($35 billion).

The outlook cut comes less than a week after Siemens Gamesa, the world’s No. 1 maker of offshore wind turbines in which Siemens Energy owns 67%, warned of customers deferring projects and the ongoing impact of COVID-19 in India and Brazil.

Spun off from former parent Siemens AG last year, Siemens Energy has seen its shares rise by more than a fifth since its listing, boosted by cost cutting measures including the reduction of 7,800 jobs, or 8.5% of the total.

Orders rose by 39% in the second quarter, while sales fell 4.4%, the company said, adding operating profit — adjusted earnings before interest, tax and amortisation — more than doubled to 197 million euros.

($1 = 0.8319 euros)

(Reporting by Christoph Steitz; Editing by Emma Thomasson)

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