[ exact phrase in "" • results by date ]

[ Google-powered • results by relevance ]


News Home

Subscribe to RSS feed

Add NWW headlines to your site (click here)

Sign up for daily updates

Keep Wind Watch online and independent!

Donate $10

Donate $5

Selected Documents

All Documents

Research Links


Press Releases


Publications & Products

Photos & Graphics


Allied Groups

Chill wind for Siemens as it cuts earnings target  

Credit:  The Irish Times, www.irishtimes.com 26 April 2012 ~~

Siemens, the German industrial conglomerate, slashed its full-year earnings target after booking a second large charge related to problems with connecting domestic offshore wind projects to the grid.

Net income in its fiscal second quarter fell more than 60 per cent compared with a year ago after the company was also forced to book a €640 million loss on its investment in Nokia Siemens Networks, its troubled telecoms equipment joint venture.

“As expected, the second quarter was not easy . . . We are addressing the problems [in power transmission] systematically,” said chief executive Peter Löscher.

Analysts were expecting a tough quarter as the previous year had been boosted by several large orders and a €1.5 billion gain on the sale of its stake in France’s Areva.

The market was aware a cut in earnings guidance was likely and the stock rose yesterday amid relief the earnings ­target was not scaled back further. Still, investors were reminded the transition to more ecological and efficient forms of energy generation and transmission may not be without difficulties.

Siemens’ earnings report also reinforced its reputation for continually unearthing problems in its portfolio, which stretches from industrial automation technology to trains and turbines.

The company expects full-year income from continuing operations to be between €5.2 billion and €5.4 billion, compared with an original forecast of €6 billion.

Siemens booked a €278 million charge on its power transmission business because of revised estimates of the regulatory hurdles, resources and employees required to complete offshore wind projects in the North Sea.

Management acknowledged the company had “completely underestimated the complexity of these projects”.

It has so far booked a total of €481 million in charges arising from delayed grid connections in the 2012 fiscal year.

Second-quarter revenues rose 9 per cent to €19.3 billion but orders, an indicator of future revenue growth, fell 13 per cent to €17.9 billion in part because of a shortfall in big projects. – (Copyright The Financial Times Limited 2012)

Source:  The Irish Times, www.irishtimes.com 26 April 2012

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

Wind Watch relies entirely
on User Funding
Donate $5 PayPal Donate


News Watch Home

Get the Facts Follow Wind Watch on Twitter

Wind Watch on Facebook


© National Wind Watch, Inc.
Use of copyrighted material adheres to Fair Use.
"Wind Watch" is a registered trademark.