The crisis in the power plant sector causes problems for the entire industry – including Siemens. But in contrast to the American competitor, General Electric, who survived the crisis, run other stores in Munich. First of all, the division can earn points with which Siemens still has much to do.
The Siemens power plant section remains a problem for the child in the group. The surplus power in gas turbines and the trend towards renewable energy make the entire industry difficult to create – even Munich has eliminated thousands of jobs. Conversion costs and let the profit in the fourth quarter almost half the break.
Last year Siemens earned 681 million euros in the last three months of the previous financial year – 1.25 billion euros in the same period last year, the group said on Thursday.
The conversion in the department called Power & Gas (PG) burdened the Siemens stock exchange chart in the fourth quarter with the amount of EUR 301 million. A significant part of the cost of labor force reduction in Germany has been made.
Siemens wants to cut costs by 500 million euros in Power & Gas
"The fact that there is a need for action at PG is recognized early," said finance director Ralf Thomas on Thursday, presenting business data. "We have taken action to remove 500 million euros worldwide." Overcapacity is burdening the entire industry. The American General Electric competitor is also for this reason months of falling.
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In comparison, the conglomerate in Munich, which is in a state of continuous development, was solid in the last financial year. Sales for 2018 as a whole increased slightly compared to the previous year by EUR 83.04 billion. Profit after tax increased by 26 million euros to 6.12 billion.
Kaeser: "We have fully achieved the forecast"
"We again delivered what we promised and fully achieved our full-year guidelines for the first half year," said Joe Kaeser, general manager of Siemens. In the forthcoming financial year, the Group expects a slight increase in sales. In all business units, with the exception of the power plant department, it is expected that the increase will far outweigh the competition, group sources said in the margins of the presentation.
Railway activity significantly increases earnings
The railway activity that will be combined with the French competitor Alstom remains a special flagship. In part, thanks to a rail order worth 600 million euros, profits in the fourth quarter increased by 23 percent to 236 million euros. "With EUR 2.3 billion, Mobility achieved record sales last year," said Thomas.
Siemens is also making great progress in restructuring the entire group, Kaeser said. The Group is increasingly being transformed into a holding company with three operating units that will become more independent and responsible. Siemens has launched another three units or wants to do so. In the case of a railway connection with Alstom, the European Commission remains committed.
la / Reuters / dpa