Siemens’ wind and renewables business posted a first quarter profit of €111m, up 119% over the year-ago period, on the back of a 16% increase in revenue to €1.38bn.
The German engineering giant said profitability in the business segment was driven by higher productivity, positive results related to project execution and higher capacity use.
A large contribution also came from the service business.
Orders in the three months were down 24% year on year at €1.44bn with fewer large contracts going into the system. Offshore wind in Europe were a highlight with a €700m deal in Belgium and a €1bn order in the UK
Profit in the energy mangement business, which includes offshore grid, were largely flat at €189m compared with €183m in the year-ago quarter.
Net income for the period was €1.94bn, up 25% year on year on the back of flat revenues of €19bn.
Siemens revised its full-year guidance for profit margin by half a percentage point to 12% despite “increasing headwinds” from a “complex geopolitical environment”.
Image: contributing to the bottom line (Siemens)
Siemens Wind profits double
Guidance revised upwards as renewables help fuel first quarter results
By EBS