Siemens' wind power business generated a 35% increase in fiscal fourth-quarter revenue, thanks to a conversion of orders from the backlog, the company said in its latest financial report.
All three reporting regions contributed to the increase, with growth in the Americas supported strongly by positive currency translation effects. Higher revenue took fourth-quarter profit up to 134 million euros, despite higher expenses for research and development, marketing and the selling associated with business expansion.
In the fiscal fourth quarter, the company's wind power division took in 2.305 billion euros in orders. However, with the expected near-term expiration of the production tax credit in the U.S., orders in the Americas nearly ceased, and the division focused on growth in other regions, winning a number of major projects in Europe, Asia and Australia.
Siemens also says it plans to reduce its production capacity in the U.S. due to market uncertainty. In September, the company announced that it was laying off 37% of its U.S. wind energy workforce.
Siemens also says it expects challenging market conditions, including substantial pricing pressure, to continue in the coming quarters.