Siemens replaces power chief after profit drop

Siemens AG (NYSESI) have decided to replace the chief of its Power Transmission business, which has been hit with costly delays to offshore wind projects.

Germany's biggest company by market capitalisation said on Tuesday Karlheinz Springer, 54, would replace Udo Niehage as the unit's chief executive on May 1, as reported by Reuters.

The move was expected following reports last week that Siemens was set to slash its full-year outlook when it publishes its second-quarter results on Wednesday, due to one-off charges related to the delayed wind projects.

Siemens, which sees itself at the forefront of Germany's push for greener energy, has struggled to make money in the offshore wind business, as low prices for wind turbines weigh on its Renewable Energy business and complicated German approval processes hurt the Power Transmission unit.

The unit, which won several contracts to connect offshore wind farms with mainland power grids, was hit with 203 million euros ($266.4 million) of charges for delayed projects in its fiscal first quarter, and a German newspaper said there was more pain to come in the second quarter.

Power Transmission's outgoing CEO Niehage will head the Siemens Berlin Liaison Office and advocate new energy policies to politicians and industry associations, Siemens said.

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