Leading offshore wind turbine manufacturer Siemens saw orders in its energy sector activities drop by a third year-on-year in the April-June 2012 quarter, to €5.2bn. The company said it faced "market challenges" which it expects to continue in the coming quarters.
President and CEO, Peter Löscher, was nevertheless bullish on the recent turbine deal signed with DONG Energy. "It will strengthen our market leadership in offshore wind," he said.
Renewables – which includes wind, solar and hydro activities – nearly halved its profits to €36m. Orders were down 60%, with the dip attributed to "a substantially smaller volume from large orders, compared to the prior year period". The division also took at hit from a €32m provision relating to a third-party supplier component.
The results revealed 10% revenue growth at €19.5bn. But much of the improvement was due to favourable currency movements. Profitability in the power transmission sector declined to €52m. The division took a €22m hit from charges, related mostly to grid connections to offshore wind farms.
Further "challenges" are foreseen in the coming quarters, related largely to connections to offshore wind farms in Germany.