On its first balance sheet, the newly spun off Siemens Energy has to report a loss of billions of dollars. With the exit of coal, the new venture will take shape, but only gradually.
Munich (dpa) – Special effects and the Corona crisis have ruined the premiere of Siemens Energy’s balance sheet.
The company that was created by the spin-off of Siemens and has a workforce of more than 90,000 employees reported a loss of 1.9 billion euros during the last fiscal year.
In the new financial year, which has been running since October, the figures should improve. However, it remained open until Siemens Energy becomes profitable again.
However, Siemens Energy boss Christian Bruch was satisfied: he was proud of how the company had overcome the challenges. “We have fully met our targets for fiscal 2020 and are confirming prospects for fiscal 2021.” However, Bruch also said that the transformation the company has started will take some time.
Massive negative special effects of around 1.5 billion euros contributed to the loss. For example, depreciation and amortization cost almost a billion, in part because Siemens Energy is much more critical of the prospects for part of its gas turbine business than it was six months ago. There were another 376 million euros in special restructuring expenses. The separation of Siemens cost 195 million euros. The Dax group had listed Energy on the stock exchange at the end of September.
For fiscal year 2021, which has been in operation since October, Siemens Energy expects sales to grow again after falling 5 percent to € 27.5 billion in 2020.
The company is also taking a step to say goodbye to the coal business. From now on it will stop participating in new tenders for projects in which pure coal power plants are built to generate electricity, said Bruch. However, existing obligations will be met. In addition to the service business, this also includes tenders for which Siemens Energy has already submitted binding offers. Combined heat and power businesses are also excluded.
Overall, Siemens Energy expects the measure to cost a low to mid-single digit percentage of sales. These are definitely profitable businesses, Bruch said, the decision is a painful one. Nothing can be said about the effects on locations and employees.