Siemens Power swings to revenue on order surge, sale of Indian stake

Siemens Power swung to revenue in its first fiscal quarter on the again of a surge in orders and a one-off achieve from promoting a stake in its Indian affiliate to dad or mum firm Siemens.

The German renewables agency reported a 1.58 billion euro ($1.7 billion) web revenue, pushed by the sale of its 18% stake in India’s Siemens Restricted for two.1 billion euros.

Siemens Power posted a 23.9% year-on-year enhance in orders to fifteen.4 billion euros, with a book-to-bill ratio of two.01, pushing its order backlog to a file excessive of 118 billion euros.

Income rose 12.6% on a comparable foundation year-on-year to 7.6 billion euros, with a very robust efficiency noticed within the firm’s grid applied sciences division.

Revenue earlier than particular objects swung to a constructive 208 million euros, up from a lack of 282 million euros for a similar quarter a yr in the past, when the corporate was beset by round 500 million euros in quality-related expenses at embattled wind turbine subsidiary Siemens Gamesa.

Free money circulation was adverse 283 million euros, which was “primarily due to Siemens Gamesa, which suffered a high cash outflow due to a loss and a build-up of operating net working capital in a seasonal weak quarter,” the corporate stated.

Siemens Energy suffered a tough 2023, as issues with manufacturing faults at Siemens Gamesa compelled the dad or mum firm to a 4.6 billion euro loss for the fiscal yr. An investigation into high quality points on the wind turbine division is ongoing.

Siemens Power Chief Monetary Officer Maria Ferraro instructed CNBC on Wednesday that the corporate was happy with the momentum proven throughout its companies and the robust order consumption.

“We continue to work through our Siemens Gamesa quality issues and we saw that this quarter was a stable quarter, so as expected, and step by step we’re going to be looking at all of those quality issues and rectifying those,” Ferraro stated.

“We have just shy of 42 billion in backlog in our Siemens Gamesa business — this is also a record order backlog. Half of that approximately is in our offshore business, and as we said we are ramping up across our facilities to really ensure that we facilitate executing those orders.”

Orders within the grid applied sciences division have been up 32.9% to eight.24 billion euros, and Ferraro stated that she anticipated the momentum to proceed.

“I think it’s no doubt that each and every country is looking at how do they progress their energy and their green agenda, and certainly our grid technologies business is excellently poised to really benefit from those programs, and you’re seeing that in quarter one and hopefully continuing throughout the rest of our fiscal year,” she added.