The wind power and renewables division of Siemens AG (ETR:SIE) swung to a profit of EUR 72 million (USD 77.4m) in the fourth fiscal quarter through September from a EUR-60-million loss a year earlier.
The fourth-quarter result last year was hit by charges of EUR 223 million related to inspecting, replacing and repairing wind turbine components, the German engineering group noted today.
Revenues actually decreased to EUR 1.5 billion in July-September 2015 from EUR 1.64 billion a year back, with a decline in the onshore business and growth in the service business. Orders jumped to EUR 2.72 billion from EUR 1.81 billion, reflecting higher volume from large orders. The division booked a EUR-1.2-billion order for an offshore wind farm and service in Germany, as well as several large onshore orders. Increased competition offshore, however, has led to a reduction in margins in that segment. Overall, the margin of the wind and renewables division was 4.8%, compared to negative 3.7% in the final quarter of fiscal 2014.
Total fourth-quarter net profit at the German group declined to EUR 1 billion from EUR 1.5 billion. Revenues came in at EUR 21.3 billion, up 4%. Excluding currency translation and portfolio effects, revenues were down 4%.