Siemens wind reports strong Q1

GERMANY: Siemens' wind division made a buoyant start to its fiscal year, with revenue, profits and orders all up in the first quarter.

Siemens wind posted increased revenue, profit and orders
Siemens wind posted increased revenue, profit and orders

Revenue increased by 15% to EUR 1.3 billion, with particular growth in the US market. The manufacturer put its strength in the region down to its largest onshore order — a 1.1GW deal with MidAmerican Energy.

Profit climbed 20% on the back of this during the October to December period, hitting EUR 63 million, thanks in part, Siemens said, to the expansion of its service division.

This was despite a tough comparison with the first quarter of 2013, when profits benefited from positive effects of project completions.

There were good signs for the future too, with orders nearly doubling to EUR 2.3 billion, from EUR 1.2 billion a year earlier. However, this is relative to the previous financial year, when demand in the US stalled due to the expected expiration of tax incentives.

But wind had a less desirable effect on the power transmission division. The business posted a loss of EUR 84 million, due in part to charges of EUR 67 million related to grid connections to offshore wind-farms in Germany.

These charges resulted from revised estimates of required resources and personnel as well as delays associated with the projects' complex marine environment.

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