Siemens to Exit Solar Energy
By Archibald Preuschat and Friedrich Geiger
FRANKFURT—Siemens AG SIE.XE -0.31% plans to divest its solar business, the German industrial conglomerate said Monday, a first step in an overhaul to bolster profits.
“Due to the changed framework conditions, lower growth and strong price pressure in the solar markets, the company’s expectations for its solar energy activities have not been met,” Siemens said in a statement.
Earlier this month, Siemens said it would initiate a program to strengthen profitability and efficiency, and would review underperforming operations. It will disclose further details on Nov. 8.
The exit from the solar business, which doesn’t meet the group-wide aim of 15% to 20% return on capital employed, will slim Siemens’ energy business down further. Last year it said it would exit the nuclear segment, and sold its stake in the nuclear joint venture Areva NP AREVA.FR -0.64% to France’s Areva SA.
