Latest news with #ChristianBruch
Reuters
4 days ago
- Business
- Reuters
Siemens Energy replaces 11 bln eur government-backed funding facility
FRANKFURT, June 5 (Reuters) - Siemens Energy on Thursday said it had replaced a 11 billion euro ($12.6 billion) government-backed funding facility that was put in place in 2023 to stabilise the power equipment maker, a key step to restore its ability to pay dividends. The government had to backstop billions of euros worth of project guarantees in late 2023 to ensure Siemens Energy - a critical player in the energy infrastructure industry - could fulfil its order book in the wake of major quality issues at its wind turbine business. "The federal government's counter-guarantee was instrumental in 2023 during a challenging phase to secure our strong anticipated growth," Siemens Energy's Chief Financial Officer Maria Ferraro said. One of the conditions of the facility was the suspension of dividend payments at Siemens Energy. "Due to our performance in the past two years and the positive market environment we were able to improve margins, cash flow and strengthen our balance sheet," Ferraro said. "This enabled us to replace the facility before the end of our fiscal year and deliver on our commitment as promised." Siemens Energy Chief Executive Christian Bruch last month said that replacing the government facility would enable the company to resume dividend payments for the 2026 fiscal year. ($1 = 0.8701 euros)
Yahoo
09-05-2025
- Business
- Yahoo
Siemens Energy expects up to 15% revenue growth for FY25
Siemens Energy has announced in its second quarter (Q2) earnings report that it anticipates a comparable revenue growth of 13–15% for fiscal year 2025 (FY25), citing strong order momentum. The company posted a 20.7% increase in revenue on a comparable basis to €10bn in Q2. Orders surged by 52.3% to €14.4bn compared with the previous-year quarter, excluding currency translation and portfolio effects. The company experienced growth across all segments, particularly in Grid Technologies and Gas Services, with the latter achieving a record high in terms of quarterly orders. The company's book-to-bill ratio remained strong at 1.45, contributing to a record order backlog of €133bn. Profit before special items climbed to €906m, a substantial increase from €170m in the same quarter of the previous fiscal year, resulting in a profit margin of 9.1%. Despite negative special items of €291m, mainly due to the sale of its Indian wind business, Siemens Energy's profit rose to €615m. Net income also saw an increase to €501m, with basic earnings per share at €0.50. Free cash flow pre-tax improved dramatically to €1.39bn due to contributions from almost all segments and bolstered by customer payments including reservation fees. Siemens Energy president and CEO Christian Bruch said: 'The rising demand for electricity led to an exceptionally strong quarter and first half of the fiscal year for our business. The improved outlook reflects our confidence in the ongoing market opportunities and our excellent project execution. Even in light of the uncertain macroeconomic factors, our focus remains on profitable growth.' For FY25, the company anticipates a profit margin before special items ranging between 4% and 6%. Net income is expected to reach up to €1bn, excluding potential positive special items following the demerger of the energy business from Siemens Limited, India. The forecast for free cash flow pre-tax has been revised to approximately €4bn. The company anticipates limited direct impact from the recent tariff announcements by the US Government on its profit in the second half of FY2025. Profit is estimated to be up to a high double-digit million euro amount after the implementation of mitigation measures. In March 2025, Siemens Energy secured a $1.6bn project to supply essential technologies for the Rumah 2 and Nairyah 2 gas-powered power stations in Saudi Arabia. "Siemens Energy expects up to 15% revenue growth for FY25" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
08-05-2025
- Business
- Free Malaysia Today
Siemens Energy expects limited US tariff hit, raises prices for new orders
Siemens Energy said its net profit rose nearly fivefold to €501 million in Q2. (EPA Images pic) FRANKFURT : Power equipment maker Siemens Energy expects a limited hit to profits from US tariffs, citing price increases for new orders, as well as a drive to find more local suppliers for parts it needs in its single biggest market. CEO Christian Bruch said most of the German group's orders contained price adjustment clauses that were cushioning the fallout from far-reaching import tariffs announced by the Trump administration last month. Calling the tariffs 'annoying but manageable', Bruch said that while it was too early to assess their future scope, his discussions with US representatives had shown a certain flexibility to change if the local economy was at risk. 'The question will always be 'does it help the USA?'', Bruch told journalists after presenting second-quarter (Q2) results. 'And if it becomes apparent that things are becoming structurally more expensive in the USA, I do believe that there is an openness there,' Bruch said. The US accounts for around a fifth of Siemens Energy's sales and is home to 12% of the group's staff as well as eight of its production locations that make everything from wind and gas turbines to power grid equipment. Siemens Energy fleshed out steps to cushion the impact of duties, including measures to buy more supplies locally and better leverage its US 'footprint for production, processing and repair of key components'. Bruch said the company currently had about 5,000 local suppliers in the US. Factoring in mitigation measures, the company said it expected 'up to a high double-digit million euro' hit to its 2025 net profit, quantifying for the first time the impact of the broad US import tariffs. It currently forecasts a net profit of up to €1 billion (US$1.1 billion) for its fiscal year ending September. The company's stock was up 3.6% at 8.44am, the biggest rise on Germany's blue-chip index, with analysts pointing to better than expected quarterly results. Siemens Energy said its net profit rose nearly fivefold to €501 million in Q2, beating analysts' average estimate of €217 million in an LSEG poll. Peer GE Vernova said last month it expected a cost impact of US$300 million to US$400 million this fiscal year from the tariffs, which have started to disrupt global supply chains. Siemens Energy said its results for January-March, most of which were flagged in April, marked its best quarter since it was spun off from former parent Siemens AG in 2020.
Yahoo
08-05-2025
- Business
- Yahoo
Siemens Energy reports 'one of the strongest quarters ever'
The lettering "Siemens" stands at the Siemens headquarters on Werner von Siemens Strasse. Felix Hörhager/dpa Siemens Energy reported a fivefold increase in profit for the second quarter, driving an upward revision of its full-year guidance for fiscal year 2025 despite ongoing challenges at its turbine-maker subsidiary Gamesa. The renewable energy company posted a quarterly profit of €501 million ($566 million) after taxes, compared to €103 million in the same period last year, calling it "one of the strongest quarters ever," with revenue increasing double-digit in all segments. Siemens Energy raised its full-year net income forecast to up to €1 billion, excluding special items. "The rising demand for electricity led to an exceptionally strong quarter and first half of the fiscal year for our business," chief executive Christian Bruch said. "The improved outlook reflects our confidence in the ongoing market opportunities." Siemens Energy also stated that the impact of the US tariffs on its business would be limited, with the financial impact expected to reach up to a high double-digit million-euro amount in the second half of the fiscal year. This is a relatively low impact compared to other industries, such as the automotive sector. While difficulties at struggling wind power unit Gamesa are not entirely resolved, with the subsidiary again posting a significant loss, this was more than offset by strong performance in gas services and grid technology.
Iraqi News
01-05-2025
- Business
- Iraqi News
Al-Sudani Oversees Signing Ceremony of Energy Cooperation Agreement and Maintenance Contracts with Siemens Energy
Baghdad-INA Prime Minister Mohammed S. Al-Sudani oversaw today, Thursday, the signing ceremony of a Principles of Cooperation Agreement in the field of energy, along with two long-term service agreement contracts for the Dibis Gas Power Plant and Al-Mussaib Thermal Power Plant, between the Ministry of Electricity and German company Siemens Energy. The signing was attended by the German Ambassador to Iraq. In a statement received by the Iraqi News Agency (INA): " That the two maintenance contracts signed include a long-term service agreement contract for the Dibis Gas Power Plant, covering two generating units with a combined capacity of 340 megawatts, and a five-year contract for Al-Mussaib Thermal Power Plant to maintain units with a production capacity of 750 megawatts, add 150 megawatts, and ensure safe operation, maintenance, and performance development". The third phase of the energy cooperation agreement aims to add 14,000 megawatts to the national grid and improving energy services across the country. During his meeting with Siemens Energy CEO Mr. Christian Bruch, the Prime Minister emphasized the importance of continuing cooperation between Iraq and Germany with the same commitment, particularly under Germany's new government. He noted that Siemens Energy is a key partner in Iraq's energy sector, which serves as a backbone for all development sectors. Prime Minister Al-Sudani affirmed that the government places the highest priority on the energy sector and the international companies working within it, especially Siemens Energy. He stressed the need to expand cooperation with the Ministry of Electricity across maintenance, production, distribution, and transmission. For his part, Mr. Bruch expressed Siemens Energys' keen interest in expanding its operations in Iraq and supporting the Ministry of Electricity through major strategic projects. He commended the progress made, especially the successful early completion of maintenance for all power generation units this year.
