Siemens aims for 10% wind business profit margin

By Kari Williamson

In the second quarter of 2011, the operating profit from wind was only 7% of sales. Michael Suess, Head of Energy Businesses at Siemens, says the lower profit margin is due to excess capacity in countries such as the US and aggressive pricing in markets such as China.

Siemens also aims to become the world's third largest wind company by capacity by 2012, according to Bloomberg Businessweek.

As part of its focus on wind, Siemens is splitting its renewable energy division in two, separating wind power from solar and hydropower.