Analysis: Siemens' profits fall as Vestas gains onshore

EUROPE: Siemens and Vestas have announced contrasting fortunes in the second quarter, with one boasting a record order book and the other a €41 million loss. Siemens' reported loss may come as a surprise given that it was labelled the world's biggest manufacturer in 2014 by Make Consulting.

A Siemens 6MW turbine being installed at Westermost Rough, UK
A Siemens 6MW turbine being installed at Westermost Rough, UK

Google Translate

Siemens reported a drop in offshore orders, at €1.41 billion for the quarter, down from €1.68 billion in the same period last year. Much of 2014's installations came prior to this. The firm's problem stems from a possible supply chain gap between current in-construction projects and bigger ones planned to come online before 2020.

Make's number two manufacturer, Vestas, seems unaffected by the loss of its offshore arm, MHI Vestas. In its second-quarter results, it said it had "its biggest order backlog ever". This comprises services and turbines supply agreements for €15 billion.

Vestas also posted €1.5 billion revenues, an 18% increase on quarter one in 2014, aided by strong performance in Europe and the Americas. Orders were at 1.75GW in quarter one of 2015, worth €7.5 billion at 31 March.

Order backlog

The backlog of turbine orders and service agreements is valued at €15 billion - a rise of €1.2 billion on quarter one in 2014. This helped Vestas bank €79 million, a rise of €39 million. Its revenue is expected to be a minimum €7.5 billion, up on the previous €6.5 billion, including service revenue.

Gamesa also posted strong results. It recorded pre-tax earnings of €66 million in the first quarter of 2014, an increase of 92% year on year. This was helped by a 43% growth in sales, which hit €820 million in the first three months of 2015. It sold 712MW of turbines, 25.6% up on the same period last year. India (27%) and China (24%) made up most of the Spanish manufacturer's orders in the quarter. It added that Adwen, its offshore joint venture with Areva, had a €18.5 million positive impact on net profit.



Increased activity in Europe, the Middle East and Africa has helped boost Nordex's quarter one net profit 62% year-on-year to €14.8 million. It said activity in the US and Asia had fallen despite a 17% increase in sales. Output is up 44.2% with turbine production rising to 462.1MW. Earnings rose 17.3% from EUR21.1 million in 2014, to €24.8 million this year. Nordex said its order book is now €1.6 billion and its board expects sales to hit €2.1 billion this year.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Windpower Monthly Events

Latest Jobs