Siemens Energy 'faces challenges'
Siemens said its Energy Sector will pose a continuing challenge for the German industrial giant, as the division posted profits 6% lower at €405m ($542m) for the company’s third quarter.
While wind turbine order growth provided an upside for Energy, it was dragged down by another €128m of charges at the Power Transmission unit relating to the grid connection of German offshore wind farms.
Power Transmission made a loss of €188m in the April-June period, wider than the €49m deficit registered at the same stage a year ago.
The Wind Power unit made €38m, up from €21m. But the year-earlier quarter included a €91m charge related to wind turbine blade issues.
Siemens said the 2014 Q3 figure for Wind Power suffered from higher production costs and a tilting of revenues away from the higher-margin offshore turbine business.
But Wind Power orders rose sharply in the quarter, not least thanks to the €1.6bn offshore wind deal to equip the 600MW Gemini plant in Dutch waters.
Siemens CEO Joe Kaeser said: "While we made good progress in most areas, the Energy Sector poses a continued challenge in the quarters to come.”
The group as a whole posted net profit 27% ahead year on year at €1.4bn.