GCTAY Siemens Gamesa Renewable Energy (PK)

   By Nathan Allen 
 

Siemens AG's (SIE.XE) chief executive reaffirmed the German company's support for Siemens Gamesa Renewable Energy SA's (SGRE.MC) management at a news conference Wednesday, amid tensions with minority shareholder Iberdrola SA (IBE.MC).

"Of course, the first year of Siemens Gamesa was not exactly how...we had originally imagined it," Siemens CEO Joe Kaeser said.

Siemens Gamesa was formed a year ago through the merger of Spain's Gamesa with Siemens's wind-power division. The energy company has since released two profit warnings and said it would cut around 6,000 jobs--more than 20% of its workforce--in an effort to shore up profitability.

Siemens holds a 59% stake in Siemens Gamesa, and Iberdrola holds around 8.1%. Iberdrola's Chief Executive Ignacio Galan has said he wasn't happy with Siemens Gamesa's performance, particularly the precipitous drop in the company's share price since the merger.

Representatives from Iberdrola recently requested the introduction of two items to the agenda of Siemens Gamesa's annual general meeting relating to the protection of minority shareholders and a guarantee that the company's headquarters would remain in Spain.

"SGRE has been built to last--for a long term and successful future--for a future in Spain," Mr. Kaeser said Wednesday.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

April 04, 2018 11:46 ET (15:46 GMT)

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