Siemens Energy, which supplies equipment and services to the power sector, scrapped its profit forecast for 2023, citing deeper than expected problems at its wind turbine division that could cost the group more than 1 billion euros ($1.1 billion).
"We are also reviewing assumptions critical to the existing business plans given productivity improvements are not materializing to the extent previously expected," the company said with regard to its wind unit Siemens Gamesa.
"In addition, we continue to experience ramp up challenges in Offshore."
($1 = 0.9132 euros)
(Reuters - Reporting by Christoph Steitz and Anirudh Saligrama; Editing by David Gregorio)