Siemens Wind Power and Renewables recorded an 84% rise in profit in the fourth quarter of the Fiscal Year 2016 despite a 56% slide in orders received compared to the fourth quarter of 2015.
The profit in the company’s renewables division was EUR 132 million in Q4 FY 2016, compared to EUR 72 million reported in Q4 2015. Profit for the entire FY 2016 was EUR 464 million as compared to EUR 160 million profit reported for FY 2015.
The division received EUR 1.205 billion worth of new orders in the last quarter of FY 2016, over twice as less compared to the Q4 orderbook which stood at EUR 2.716 billion which was boosted by a EUR 1.2 billion order for an offshore wind-farm, including service, in Germany and several large orders in the onshore business, Siemens said.
Siemens Wind Power and Renewables orderbook for the FY 2016 stood at EUR 7.973 billion, a 30% improvement compared to EUR 6.136 billion in new orders received in FY 2015.
Siemens also saw a 6% increase in revenue in the period, from EUR 1.504 billion in Q4 2015, to 1.597 billion in Q4 2016 despite negative effects from currency translation, according to the company.
The division’s continued strong profitability was driven by higher revenue, improved productivity in production and installation, increased capacity utilization, and a larger contribution from the service business, Siemens said.
The division’s revenue for FY 2016 was EUR 5.976 billion, 6% more than EUR 5.66 billion revenue reported in FY 2015.
Overall, Siemens saw 5% increases in both orders and revenue compared to fiscal 2015, at EUR 86.5 billion and EUR 79.6 billion.
The company’s Industrial Business profit up 13%, standing at EUR 8.7 billion due to strong increases in Power and Gas, Energy Management, and Wind Power and Renewables.
Siemens reported net income of EUR 5.6 billion for FY 2016, compared to fiscal 2015 net income of EUR 7.4 billion which included EUR 3 billion related to divestments of the hearing aid business and Siemens’ stake in BSH Bosch und Siemens Hausgeräte GmbH (BSH).
“The fiscal year just ended was one of the strongest in the history of our company. Setting aside portfolio divestments, it was actually the best. We worked hard and I am proud of what our global team has achieved. In fiscal 2017 we will continue working with full concentration on the execution of Vision 2020,” Joe Kaeser, President and Chief Executive Officer of Siemens AG.