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.

Google Translate

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.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Latest news

Partner content