© Siemens

The business environment in the Power and Gas division remains unchanged, with shrinking markets, massive overcapacity, fierce competition and price pressure, particularly for large gas turbines. Nevertheless, incoming orders rose by 16% on a comparable basis thanks to a number of major projects, including in the service sector. However, the extremely challenging business situation is reflected in sales and earnings. The earnings margin was 4.2% in the reporting period and therefore well below the specified target corridor of 11% to 15%.