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Germany

Germany

Siemens wind orders fall 42%

GERMANY: Siemens Wind and Renewables had a mixed quarter, with a rise in revenue and profit, but a significant decline in orders.

The commercialisation of the 6MW turbine increased costs in the quarter
The commercialisation of the 6MW turbine increased costs in the quarter

The division recorded a 12% revenue increase to €1.5 billion in the three months to the end of December – Siemens' first quarter – largely due to strong performance in Germany.

Siemens CEO Joe Kaeser said that the revenue growth was mainly down to the contribution of the offshore wind business. But movement towards making the 6MW offshore turbine production-ready increased costs.

Despite this, profit climbed 21% to €80 million as a result of a higher contribution from the servicing business, helping to push the margin up 4 basis points to 5.4%.

There was a drop off in orders, with only €1.3 billion of deals signed in the quarter, 42% lower than the same period a year before. This figure was weaker than the €1.9 billion consensus expectation from financial analysts.

Siemens said, "sharply lower volumes from large orders", particularly in the US and Germany, were behind the slump.

In November, Siemens revealed that costs related to faulty wind turbines hit its results, forcing the wind division into a loss for both the fourth quarter and the full year.

Kaeser also said that the company's plans to deal with technical difficulties with turbine bearings and blades are "progressing as planned".

The German manufacturer said it was impacted by €223 million in charges for inspecting and replacing main bearings in onshore turbines, as well as repairing blades on both onshore and offshore turbines.

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