By Editors of Power Engineering
Overall profits at Siemens took a hit in the first quarter due to weak demand from its power and gas division.
The company’s overall profit reached $2.75 billion, down 14 percent, with profits at the power and gas division half of what they were year-over-year, Reuters reported.
“The declining market for fossil power generation is not a temporary slump. Instead it reveals the expected dramatic development that we’ll only be able to address and we must address by taking strategic measures,” Chief Executive Joe Kaeser said as the group published results on Wednesday.
The company expects to reduce costs, including severances, through the fiscal year, though officials did not specify how many jobs or which sector would be impacted.