Siemens wind profits kick up at year end

GERMANY: Siemens saw profits in its wind division jump 34% in the fourth quarter on the back of reduced costs.

Siemens has seen a rise in sales but a fall in orders
Siemens has seen a rise in sales but a fall in orders

The business generated EUR 179 million for the manufacturer, compared with EUR 134 million in Q4 2012, after revenue climbed 10% to EUR 1.6 billion.

In the first nine months of the year, the company saw its profits slide by 26%. This resulted in a 2013 profit increase of just 1%, taking it to EUR 306 million.

Siemens said the strong quarter coincides with higher levels of installations in the northern-hemisphere summer.

Most of the growth came from its operations in Europe, with sales in the US continuing to slow.

But orders from the Americas showed strong growth, with Europe and Asia seeing a decline. Total orders for the period were down by 34% to EUR 1.5 billion.

In the last quarter, EUR 37 million in charges relating to grid connections to offshore wind farms contributed to the power transmission division posting a EUR 40 million loss.

Costs for inspection and retrofitting B53 turbine blades after blade failures earlier this year "held back" full year profits, with the continuing decline in US sales also denting performance.

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