Siemens Energy, which supplies equipment and services to the power sector, said it expects to hit the lower end of its profit margin target this year, adding its wind turbine division remained under pressure.
"Our adjusted outlook reflects the strong demand, as well as the continuous challenging market environment in the wind industry," chief executive Christian Bruch said.
The group said it now expects its profit margin before special items to come in at the lower end of its 1%-3% target range, pointing to a €374m second-quarter loss at its Siemens Gamesa division.
The company makes and maintains gas and wind turbines as well as converter stations.
Siemens Energy cited supply chain issues, the ramp-up of offshore activities as well as loss-making legacy contracts at the Spanish-based wind turbine maker as the reasons for the ongoing problems.
At the same time, Siemens Energy's order backlog hit a record at €102 billion.
The group also raised its sales outlook due to faster-than-expected growth in its markets, now forecasting revenues to increase by up to 12% in 2023.
"All in all, (there is) some for the bulls and some for the bears," a Frankfurt-based trader said, adding that the weak performance at Siemens Gamesa should initially weigh on shares.
Siemens Energy still swung to a profit before special items of €41m in the second quarter, helped by its other divisions - including gas services and grid technologies - compared with a €49m loss the same time last year.
