Siemens to take further writedown on solar business: report

Sun Nov 4, 2012 3:03pm EST
 

FRANKFURT (Reuters) - German engineering conglomerate Siemens (SIEGn.DE: Quote) will have to take additional gross writedowns of more than 250 million euros ($321.13 million) on the solar business that it is exiting, a German paper reported.

The additional amount is made up of writedowns on the value of company units, operational losses and writedowns on solar projects that have already been started, Financial Times Deutschland reported in a story to be published on Monday, citing company sources.

In total, the company is booking losses of 800 million euros on its solar business, which it started in 2009, the paper added.

Siemens announced last month it was pulling the plug on its loss-making solar business as part of plans to improve profitability.

Siemens was not immediately available for comment.

As part of its plans to quit solar, Siemens is exiting the Desertec project, which envisages Europe will import up to a fifth of its electricity from solar and wind parks in North Africa and the Middle East by 2050.

FTD reported in a separate story also to be published on Monday that State Grid Corporation of China and First Solar (FSLR.O: Quote) were considering taking stakes in Desertec.

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(Reporting by Victoria Bryan, Maria Sheahan and Jens Hack; Editing by Marguerita Choy)