Siemens to take further write-down on solar business - report

FRANKFURT Sun Nov 4, 2012 8:00pm GMT

The logo of Siemens AG company is pictured atop a factory in Berlin October 9, 2012. REUTERS/Fabrizio Bensch

The logo of Siemens AG company is pictured atop a factory in Berlin October 9, 2012.

Credit: Reuters/Fabrizio Bensch

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FRANKFURT (Reuters) - German engineering conglomerate Siemens (SIEGn.DE) will have to take additional gross write downs of more than 250 million euros (200.5 million pounds) on the solar business that it is exiting, a German paper reported.

The additional amount is made up of write downs on the value of company units, operational losses and write downs 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) were considering taking stakes in Desertec.

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

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