GERMANY: Siemens blamed "timing effects" as its wind power and renewables division reported profits of €51 million in the first quarter of 2016, a fall of 31% year-on-year.
Profits fell from €80 million in the first quarter of 2016 while revenues dropped from €1.47 billion to €1.2 billion – a cut of 19%. Siemens' 2016 Q1 runs from 1 October to 31 December 2015.
The fall in revenue was "due in part to timing effects related to project execution". Siemens group CEO Joe Kaeser said the dent in revenue was expected because of the structure of the order book. He remained happy that orders were still being placed.
This division's orders increased 44% from €1.32 billion to €1.9 billion in the first quarter.
In the quarter, Siemens was awarded deals for the Galloper, Walney Extension East and Hywind Scotland offshore projects. It was also contracted to supply the 172.8MW Clyde extension onshore project in Scotland.
This is the second consecutive quarter that revenue at Siemens' wind business has fallen. In November, the group reported an 8% fall to €1.5 billion from €1.6 billion, which the company put down to a fall in its onshore wind business.
However, revenue for the Siemens group as a whole increased 8% year on year. As a result of the strong start of the year, Siemens increased its outlook for 2016. It raised its basic earnings per share (EPS) forecast from net income to a range of €6.00 and €6.40 from €5.90 to €6.20.