Improved business prospects for Siemens in the energy technology market (Germany)
Business prospects in the Energy Sector of Siemens AG have improved. “There are signs of an upturn in sections of the market for infrastructure in the field of energy technology. Our customers are again increasing their investments in new projects and placing orders. The number of invitations to tender, for which we have submitted bids, has recently increased noticeable,” said Wolfgang Dehen, member of the Managing Board of Siemens and CEO of the Energy Sector, at an investors event.
“Not all of our divisions have bottomed out, but the energy market is now reaching its low point. Major fluctuations are still to be expected in some areas. We can already see encouraging signs of a recovery of demand in business with renewables, power distribution and service.”
In the mid-term Siemens anticipates that the energy market volume will return to the record level of 2008. The company sees some of the drivers in the increase in the world’s population and the ongoing electrification of emerging countries. “We are very well equipped to handle the imminent growth,” said Dehen. “We are the only company covering the entire energy conversion chain, and this has a knock-on effect which strengthens our business.” Because each new wind farm also translates into investments in a grid connection and expenditures in service. For example, additional gas turbine power plants are required to compensate fluctuations in renewables-based power supply.
Siemens also has a firm focus of future fields. In the area of wind power business the company is very well positioned with innovations such as its gearless three-megawatt wind turbine to make the top 3 among manufacturers worldwide by 2012 as planned. “We’ll also be further expanding electromobility business at Siemens and actively shaping this growth market as a partner of the automotive industry and utilities,” said Dehen.
In the first six months of the current fiscal year Siemens Energy Sector demonstrated its strength in operations: At the end of the second quarter of 2010, it had a record order backlog totaling €50 billion. For one and half years now the Sector has posted stable figures within its margin corridor, which is between 11 and 15 percent. At the same time the Sector increased its investments in research and development by almost 50 percent from fiscal 2007 to 2009.
Source: siemens, June 30, 2010;