Siemens Energy's shares slump as wind-turbine issues may cause $5 billion loss

Shares of Siemens Energy fell as much as 7% on Monday in volatile trade as the conglomerate warned of a €4.5 billion annual loss due to trouble at its wind-turbine division.

The company said it has identified increased failure rates for components of its onshore wind turbines, while it’s not been able to boost productivty of its offshore turbines. Siemens Gamesa, which makes the wind turbines, was responsible for a €2.56 billion loss on its own — compared to the consensus estimate of a €1.55 billion loss. The company took €1.6 billion of charges on its onshore wind division and €600 million for increased product costs and ramp-up challenges in the offshore business.

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