The German supplier of equipment to the power sector, which was spun off from Siemens AG in 2020, now expects a profit margin before special items of 1%-3% in the year through September, down from the 2%-4% previously forecast.

Siemens Energy owns 92.7% of Siemens Gamesa and is currently aiming to buy the rest of the division to get a better handle on operating issues that have caused a string of profit warnings and become a drag on performance.

Siemens Gamesa earlier reported a 760 million euro loss before interest and tax pre-purchase price allocation and before integration and restructuring costs for the first quarter, including a 472 million euro charge.

"These charges were triggered by an evaluation of the failure rate of the installed fleet, during which Siemens Gamesa detected a negative development of failure rates in specific components resulting in higher warranty and service maintenance costs than previously estimated," Siemens Energy said.

(Reporting by Christoph Steitz; Editing by Ludwig Burger and Leslie Adler)