A wind turbine of the Siemens Gamesa company located at the Port of Arinaga is seen from Arinaga beach on Gran Canaria Island, Spain, May 2, 2022. Picture taken May 2, 2022. REUTERS/Borja SuarezRegister now for FREE unlimited access to Reuters.comMADRID, Aug 2 (Reuters) - Wind turbine maker Siemens Gamesa (SGREN.MC) lowered its 2022 profitability expectations even further on Tuesday and said it would remain negative through 2023, citing expensive raw materials, component failures and geopolitical uncertainty.Making masts and blades for wind turbines has proved a tough business in recent years despite strong demand from governments banking on wind energy to wean themselves off fossil fuels. Challenges have included competition, COVID-19 disruption and runaway metals prices exacerbated by war in Ukraine. read more Siemens Gamesa has struggled in particular, partly with delivering new products. This prompted its majority shareholder Siemens Energy (ENR1n.DE) to launch a 4.05 billion euro ($4.2 billion) bid to buy the one-third stake it does not already own.Register now for FREE unlimited access to Reuters.comThe turbine maker has launched "staffing and footprint optimization actions", it said on Tuesday, but gave no details beyond saying it would be carried out globally.People familiar with the matter told Reuters the firm is considering cutting around 2,500 jobs, or about 9% of its workforce. read more The company said it now expects its full-year core earnings margin, excluding certain costs, to be minus 5.5%, from a previous view of minus 4%, even including the impact of capital gains from the sale of its wind farm development division.Component failures and repairs, mostly at its onshore business, cost 113 million euros, around 4.6% of revenue, in the third quarter.Register now for FREE unlimited access to Reuters.comReporting by Isla Binnie; Editing by Christian Schmollinger and Christopher CushingOur Standards: The Thomson Reuters Trust Principles.
Wind turbine maker Siemens Gamesa cuts profitability forecast further.