Siemens Flies High on East Anglia ONE Deal

Siemens recorded a 16% increase in revenue at its Wind Power and Renewables division in the second quarter of the Fiscal Year 2016 compared to the same period a year earlier.

Wind Power and Renewables was one of the company’s divisions to land nine-digit contracts in the quarter with a EUR 1.2 billion order to supply 102 SWT-7.0-154 direct-drive wind turbines to the 714MW East Anglia ONE offshore wind farm in the UK, and service them for an initial period of five years.

The East Anglia ONE contract helped the division improve its orderbook by 52% quarter-on-quarter, from EUR 1.41bn in Q2 2015 to 2.14bn in Q2 2016. The revenue increased from EUR 1.26bn to EUR 1.46bn, a 16% rise.

The division recorded a EUR 137 million net profit in Q2 2016, as opposed to EUR 44 million loss a year earlier which included burdens related to main bearings and ramp-up expenses for commercial-scale production of a new turbine offering.

Overall, Siemens posted EUR 19bn revenue for the quarter, and added EUR 22.3bn worth of new orders, a 7% increase compared to Q2 2015.

The company’s net income of EUR 1.5bn came in below the EUR 3.9bn in Q2 FY 2015 which included EUR 3bn in divestment gains from the sale of the hearing aid business and Siemens’ stake in BSH Bosch und Siemens Hausgeräte GmbH (BSH).

”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 Joe Kaeser, President and Chief Executive Officer of Siemens AG.

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