Siemens Energy makes changes to leadership in wind unit, improves outlook

Siemens Energy, a key player in the power industry, is making significant changes to its wind turbine division in an effort to address ongoing challenges. The company announced that Jochen Eickholt, CEO of Siemens Gamesa, will be stepping down at the end of July, with board member Vinod Philip set to take over. This move comes as Siemens Energy looks to implement a generational change in leadership to tackle the division’s long-standing profitability issues.

The wind turbine division has been grappling with quality problems, particularly with its 4.X and 5.X turbine platforms, leading to a group-wide crisis. Sales of the 4.X platform are set to resume in Europe by the end of September, but there is no timeline for the restart of sales for the 5.X model. Despite these challenges, Siemens Energy remains optimistic about its future, with a raised outlook for 2024 driven by strong performance in its power grid business.

The company reported a more than fourfold increase in profit before special items in the second quarter, reaching 170 million euros. This positive financial performance, coupled with the leadership changes and strategic focus on key markets like Europe and the United States, has boosted investor confidence. Siemens Energy’s shares rose by 6.6% in pre-market trade following the announcement.

Overall, Siemens Energy’s efforts to streamline its operations, address quality issues, and strengthen its position in the power industry are showing promising results. With a new CEO at the helm and a revised strategic approach, the company is poised for a brighter future in the renewable energy sector.