Siemens Windmill Woes Clip Investor Return as Delays Persist

Siemens AG (SIE) Chief Executive Officer Peter Loescher lent his face to a company advertising campaign last month that promoted a greater focus on renewable energy. Investors are still waiting for evidence the foray will pay off.

Siemens may have to lower its full-year profit goal when it reports earnings next week. Analysts surveyed by Bloomberg predict net income of about 5.57 billion euros ($7.32 billion), compared with Siemens’s own target of 6 billion euros. The power-transmission unit may book a charge of 200 million euros for last quarter, Andreas Willi, an analyst at JPMorgan, said.

Loescher’s bid to wean Siemens off nuclear power and generate 40 billion euros in sales from environmental products has suffered setbacks as the German engineering company struggles to connect offshore wind parks to the electricity grid and prices tumble for turbines. An earnings revision would deal a blow to Loescher, who in five years built his reputation on stabilizing Siemens’s historically volatile earnings.

“The industry and Siemens need to become more efficient, cut costs, industrialize processes and try to manage capacity as tightly as they can,” said Martin Prozesky, an analyst at Sanford C. Bernstein in London, who has a “market perform” recommendation on the stock. “In wind, offshore is still the best place to be.”

Bloomberg

2 responses to “Siemens Windmill Woes Clip Investor Return as Delays Persist

  1. Silberstein, Jek

    Imo, Loeschar is a drooling MORON, or perhaps just a Rudi Hess, because getting Siemens OUT of nukes is INSANE, when Siemans could pick-up Liquid Floride-Thorium Reactors, where the fuel is cheap, safe, and can burn-up more dangerous wastes! NO POSSIBLE Meltdowns! $30 a Kilo! No shut-downs to refuel! German electricity could cost 2/3rds LESS! Sounds like an EU RECOVERY right there! Don’t believe me, google Thorium reactors, and check it out. The PRE-EMINENT Engineers on Earth (when NOT led-around by EU-apparacheks grasping their noses),–the Noble Germans, could ESTABLISH the SAVING of Earth, by switching to LFTRs, but no, the IDIOT (imo) LOESCHAR is still attacking the “Russian-Front” of subsidized wind power. Need I remind you of what happen with the Last “Russian-front?” 9 out of 10 Soldaten fell for the Fatherland on the Russian front, a horrible waste, since Hitler was told they couldn’t win after the Kurst-offensive failed in ’43, two years before the final debacle.

  2. Jek, some people never learn!
    Wasn’t Siemens the go-to company for sane scientific investments?
    Did they kill off the people with brains and common sense or have they just been lobotomized?
    I can’t believe the slosh I’m reading.

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