TORONTO (Reuters) - German industrial company Siemens AG (DE:SIEGn) has not seen an easing in pricing pressures in the gas-fired turbine market, the head of the company's energy business said on Thursday.
"It's still a very competitive market," Lisa Davis, a member of the company's managing board, said on the sidelines of a conference in Toronto.
"If you look at the overall market for gas turbines, especially the large gas turbines, there's more capacity to produce than there is demand," the Houston-based executive said.
Siemens signed an 8 billion euro ($8.8 billion) deal to supply gas and wind power plants to Egypt in June, boosting a division which is struggling at home.
Profit at Siemens' power and gas division tumbled by a third last quarter and its profit margin dropped to 12.9 percent from 20.3 percent a year earlier as its large gas turbines in particular were hit by overcapacities and huge price erosion.
Davis said the company expects pricing to improve over time given a broader increase in demand for electricity globally.
"We still see a very strong business in oil and gas, and we see that continuing in the future."