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Siemens posts €48 million renewables loss

GERMANY: Siemens today blamed “increased price pressures” for its renewable energy business posting a €48 million loss for the first quarter of its current financial year.

The German engineering giant’s renewables division comprises wind, solar and hydropower technologies.

It issued a statement today that the €48m loss for the three months ending 31 December 2011 was due "primarily to higher R&D expenses, costs related to the expansion of the business in a highly competitive environment, increased price pressure and a less favorable revenue mix".

The statement echoes GE’s results yesterday, which revealed that falling turbine prices were acting as a drag on company profits.

Despite Siemens’ renewables profit fall, revenue for the division’s first quarter actually rose in comparison to the same period a year previously, up 9% from €868m to €943m.

New orders meanwhile grew by two thirds, from €945m for the three months to 31 December 2010 to €1,560 for the three months to 31 December 2011.

In particular, Siemens recorded a number of large orders for onshore wind-farms in the US, and the wind business expects continued revenue growth and a return to profitability in coming quarters.

Siemens’ transmission business, meanwhile, made a €145m loss for the quarter, which was blamed on delays to the approval process for connecting offshore wind turbines to power grids, mainly in Germany.

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