Siemens Energy on Wednesday singled out problems at wind turbine subsidiary Siemens Gamesa as the reason for a 37% drop in third-quarter orders as well as a new, lower, target corridor for its key profit margin.
The group, which supplies turbines and services to the utility industry, said that while its gas and power segment was fully on track, Siemens Gamesa, in which Siemens Energy owns 67%, was not.
"We are not satisfied with the performance of (Siemens Gamesa), which suffered a significant setback in the turnaround of the onshore business," Siemens Energy Chief Executive Christian Bruch said.
Siemens Gamesa, the world's largest maker of offshore turbines last month issued a profit warning and cited high raw materials prices as well as problems related to the launch of an onshore turbine as the main reasons.
Siemens Energy, which pulled its margin outlook as a result last, said it now expects an adjusted margin on earnings before interest, tax and amortisation in a range of 2% to below 3% before special items.
That margin stood at 3.5% after nine months. Orders in the third quarter fell to 5.95 billion euros ($7.1 billion), while the group's backlog declined 1.9% quarter on quarter to 82.6 billion.