Solar exit costs Siemens €250 million05. November 2012 | Industry & Suppliers, Markets & Trends | By: Jacob Paulsen
Siemens' exit from the photovoltaics and solar thermal industry is expected to cost the electronics giant €250 million this year. Since 2009, the Munich-based company has invested around €800 million in its solar business.
According to the Financial Times Deutschland (FTD), Siemens will incur costs amounting to around €250 million, due to write downs on already begun solar projects, goodwill amortizations and operating losses.
It added that these losses have not been recorded in Siemens’ continuing operations, but rather in its consolidated income. Despite this, the company is still expected to achieve a net income of between €5.2 billion to €5.4 billion in 2012.
In addition to selling off its solar projects business, Siemens is looking to sell its Israeli subsidiary Solel, which it purchased three years ago for around €280 million. Solel is one of the founding members of the Desertec Industrial Initiative (DII). It is still not clear however, if the company will sell its 40% stake in Israel-based Arava Power.
Siemens’ shares in Italian company Archimede, menawhile, have already been transferred to the majority shareholders for a symbolic price, continued FDP. The company raised its stake in the joint venture to 45% in 2010.
On October 22, Siemens announced it would no longer operate in the solar industry, "due to … changed framework conditions, lower growth and strong price pressure." Following the first announcement, it was then made public that Siemens would withdraw from DII, and significantly scale its photovoltaic inverter business back.
More restructuring details are expected to be provided by CEO Peter Löscher this Thursday, when the company presents its financial figures for the previous fiscal year.
Translated and edited by Becky Beetz.
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