In its financial results for the first quarter of fiscal year 2016, Siemens reported the revenue in its wind and renewables business was down 19% at EUR 1.2 billion, compared to almost EUR 1.5 billion in the same period last year.
Siemens said “timing effects related to project execution” partly affected the revenue.
The company’s wind and renewables unit also saw a decrease in Q1 profit, which was EUR 51 million, down by 37% from last year’s EUR 80 million. Siemens added that profitability reflects the revenue decline.
However, the company’s wind orders were up by 44% in Q1, standing at EUR 1.9 billion, compared to the same period in 2015 when they amounted to EUR 1.3 billion. The order increase was positively affected by a EUR 1 billion order for an offshore wind farm in the UK.
Overall, Siemens reported a 8% higher revenue at EUR 18.9 billion, with contract wins in Europe and Africa driving the first-quarter orders up 27% year-over-year.
“We delivered a strong quarter and are well underway in executing our Vision 2020. Therefore, we will raise our earnings outlook for 2016, even though the macroeconomic and geopolitical developments remain a concern for our markets. We continue to focus on addressing our structural challenges in the company and invest into further developing our markets and strengthening our innovation power,” said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
Based on the Q1 results, Siemens raised its previous expectation for earnings per share from the range of €5.90 to €6.20 to the range of €6.00 to €6.40.