Siemens Energy stock prices have dropped by record numbers following growing issues at Siemens Gamesa Renewable Energy.
Share prices dropped by as much as 36% after the firm reported a “substantial increase in failure rates of wind turbine components.”
Siemens Energy is saying that it is scrapping its annual profit guidance and has warned shareholders that additional costs may exceed €1 billion (£85.68 million).
The company was already being hit with issues such as the rising costs of steel and other key raw materials when the news of its wind turbine failures went public.
Chief executive, Christian Bruch has told reporters “Even though it should be clear to everyone, I would like to emphasise again how bitter this is for all of us”.
Following these reported issues “the board initiated an extended technical review of Siemens Gamesa’s installed fleet” the firms said.
Earlier this month Siemens Gamesa minority shareholders approved a capital reduction for the remaining 2.21% of shares not held by Siemens Energy in the Extraordinary General Meeting of Shareholders.
At the time Mr Bruch said: “This is an important step in preparing for full integration. Besides, the turnaround program at Siemens Gamesa, Mistral, needs further rigorous execution, even though we see first moves in the right direction.”
Last year Siemens Energy AG announced taking full control of its troubled Gamesa unit.
After counting shareholder votes, the German company controls 93% of the wind turbine maker with a plan to move to full ownership and a de-listing of the manufacturer.
In 2022 there were reported issues with turbines as the firm rushed production in 2019 to combat industry competition.
Gamesa has also been experiencing issues with its scaling up its new onshore turbine model, named the 5.X platform. A review of this product is still underway.