* Names new head of Power Transmission
* Says Karlheinz Springer to replace Udo Niehage
* Says Springer to take over on May 1
* Move comes after major charges at Power Transmission
* Shares up 1.2 percent vs DAX index up 0.9 percent
(Adds details, background)
By Maria Sheahan
FRANKFURT, April 24 German engineering
conglomerate Siemens AG ousted 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.
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.
The German offshore wind power market is expected to grow
rapidly in coming years as the government banks on wind farms to
help it shift its energy mix toward renewables and away from
But 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.
Siemens has downplayed the problems it is having at its
Renewable Energy and Power Transmission businesses, blaming the
growing pains of a new technology and Germany's complex
regulatory environment. Still, its finance chief Joe Kaeser
recently said he expected the problems to persist for a while.
According to a Reuters poll, analysts on average see Siemens
posting adjusted net income from continuing operations of 5.2
billion euros, compared with its outlook for 6 billion, partly
due to the one-off charges.
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.
Siemens shares were up 1.2 percent at 69.73 euros by 1436
GMT while the blue chip DAX index was up 0.9 percent.
($1 = 0.7619 euros)
(Editing by David Holmes)