Siemens Energy Posts Profit In Q1, Orders Climb; Back FY24 View

(RTTNews) - Germany's Siemens Energy AG reported Wednesday a profit in its first quarter, compared to last year's loss, with strong growth in revenues. Orders as well as order backlog climbed from the prior year amid continued favorable energy market trends. Further, the company confirmed its outlook for fiscal year 2024.

Christian Bruch, President and Chief Executive Officer of Siemens Energy, said, "The solid first quarter is encouraging, in part also due to project shifts, which are normal in plant engineering, especially with the market dynamics we are currently seeing. That is why our focus remains on solving the quality problems in our onshore wind business and making the most of the growth potential for the rest of the company."

For fiscal 2024, the company still expects a net income of up to 1 billion euros including impacts from disposals and the acceleration of the portfolio transformation.

Comparable revenue growth, excluding currency translation and portfolio effects, is expected in a range of 3 percent to 7 percent, and profit margin before special items is projected between negative 2 percent and positive 1 percent.

In its first quarter, net income attributable to shareholders was 1.55 billion euros or 1.78 euros per share, compared to a loss of 473 million euros or 0.60 euros per share in the prior year.

The latest results included special items of positive 1.67 billion euros, driven by a pre tax gain related to the sale of an 18 percent stake in Siemens Limited, India, of 1.73 billion euros. In the prior year, the results were hit by a charge of 103 million euros.

Siemens Energy's profit before special items was 208 million euros, compared to loss of 282 million euros, which was burdened by quality related charges at Siemens Gamesa.

Quarterly revenue grew to 7.65 billion euros from 7.06 billion euros in the prior year. Revenue was up 12.6 percent on a comparable basis. While all segments contributed to growth, the increase was particularly strong at Grid Technologies, the company said.

Orders increased year-over-year by 23.9 percent on a comparable basis to 15.4 billion euros, primarily due to growth at Grid Technologies and Transformation of Industry. All segments reported an increase based on a substantially higher volume from large orders.

The order backlog at the end of the quarter was 118 billion euros, up 19.1 percent from 99 billion euros a year ago.

On Germany's XETRA, Siemens Energy shares were trading at 14.39 euros, up 1.05 percent.

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