Siemens AG, Europe’s largest engineering company, said it expects to win orders of about 15 billion euros ($21 billion) from economic stimulus programs as it aims to overcome the drop in private investment.
Siemens said it will gain those contracts in the next three fiscal years, with about 40 percent, or 6 billion euros, involving environmentally friendly technology and infrastructure, the company said in a statement today....
...Loescher said Siemens is already benefiting from programs such as high-speed trains in China and refitting government buildings in the U.S. to save energy. The U.S. offers the largest potential for Siemens, with 85 billion euros in stimulus spending in relevant markets, followed by China with 25 billion euros and Germany with 5 billion euros, Siemens said.
“Our green portfolio will be a key growth driver,” Loescher said later in a Bloomberg Television interview. “We have the broadest and deepest green portfolio in the world.”
Renewable energy was the only one of Siemens’s five energy businesses where order intake rose in the fiscal first half. It also had the highest profit margin, at 13.6 percent, and the fastest sales growth. Wind power, with about 5,500 employees, accounted for approximately 90 percent of the renewable energy division’s 2.1 billion euros in sales.
Siemens is the world’s leading provider of offshore wind turbines, and sixth in the overall wind-turbine market. Loescher said he expects the offshore wind market to grow by 20 percent per year.
Siemens on June 16 said it is holding talks with Munich Re and utilities including RWE AG and E.ON AG as well as Deutsche Bank AG on developing solar plants in the Sahara desert to supply 15 percent of Europe’s power needs by mid-century. Siemens will discuss a feasibility study with its partners on July 13, Loescher said today. Siemens expects the solar energy market to grow by 24 percent per year, he added....MORE