Siemens posted a 16% rise in second quarter revenues in its wind and renewables business alongside a healthy boost to its order books.
The company said the revenue jump to €1.46bn from €1.26bn in the year-ago period was down to “strong conversion from the backlog”.
Orders were boosted by several large deals, including a €1.2bn offshore wind supply and service deal in the UK.
Net profits were €137m, compared with a loss of €44m in the second quarter of 2015, due to “lower production and installation costs, positive effects from project execution and completion, and a positive effect related to main bearings”.
The latter issue, and a related charge, contributed to the loss last time around.
Siemens energy management business, which includes transmission, boosted profits by 86% to €172m on the back of revenues of €2.71bn, down marginally.
It said the result was due to “continuing profitability improvements mainly in the solutions, transformer and high-voltage businesses” and that the previous quarter had included a “higher proportion of projects with low profit margins”.
Siemens posted overall revenues of €19bn, up 5%, and net income of €1.5bn, below the year-ago quarter due largely to one-offs in that period.
“We delivered another convincing performance in the second quarter, compared to both the prior year and our industry sector. Despite ongoing challenges in the market environment, we will continue to focus rigorously on profitable growth,” said chief executive Joe Kaeser.
Image: Siemens turbines on the job (Westermeerwind)
