Today's buy idea:
VWDRY----> $9.17
Vestas Wind Systems
Largest wind turbine manufacturer in the world
Why buy today?
Because of the second largest:
Siemens Energy scraps profit outlook as wind turbine troubles deepen
June 23, 2023
- Expects wind unit issues to cost more than 1 bln eur
- Continues to face ramp-up issues in offshore wind
- Frankfurt-listed shares -12.8%
FRANKFURT (Reuters) - Siemens Energy, which supplies equipment and services to the power sector, scrapped its 2023 profit outlook
after a review of its wind turbine unit exposed deeper than expected problems that could cost more than 1 billion euros ($1.1 billion).
Issues at the company's Siemens Gamesa unit have been a drag on the parent, and the announcement marks the latest blow to Siemens Energy's efforts to get these under control following a full takeover of the business.
Frankfurt-listed Siemens Energy shares were down 12.8% at 1849 GMT after the announcement, which follows the
initial discovery of faulty components at Siemens Gamesa in January that caused a charge of nearly half a billion euros.
Siemens Energy said that an extended technical review of Siemens Gamesa's installed turbine fleet and product designs was launched following that is says
was a substantial increase in failure rates of components.
The company, which was spun off from Siemens
(SIEGn.DE), said the review suggests that it will be significantly more expensive than initially thought to reach the desired product quality of certain onshore turbines.
This, it said, would incur costs of more than 1 billion euros.
"We are also reviewing assumptions critical to the existing business plans given productivity improvements are not materializing to the extent previously expected," Siemens Energy said.
"In addition, we continue to experience ramp up challenges in Offshore."
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Edit: These foreign ADR's are kind of boring, but unfortunately the US lacks a big company outside of GE to suggest, and I doubt it can move the needle much on GE. But it might.