Siemens Energy shares slide 30% after company seeks support from German government

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Shares of Siemens Energy tumbled on Thursday after the company sought guarantees from the German government.

tumbled by more than 30% on Thursday afternoon, after the company sought guarantees from the German government., citing a "substantial increase in failure rates of wind turbine components" at its wind division Siemens Gamesa.

The company, which did not comment further on the financial details of a targeted package, said its financial results for the fiscal year 2023 were expected to be fully in line with its guidance. Siemens Energy is set to report its fiscal fourth-quarter results on Nov. 15. The company on Thursday said it has yet to decide its annual budget for 2024.

"The wind business Siemens Gamesa is working through the quality issues and is addressing the offshore ramp up challenges as announced in the third quarter communication for fiscal year 2023," Siemens Energy said. The stock fell to fell to the bottom of the pan-European Stoxx 600 index as Thursday's selloff deepened.

 

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