I must admit, I was completely blown away this morning after I read that Siemens (NYSE:SI) would be bailing on solar.
In a statement issued by Siemens, the company said that due to the changed framework conditions, lower growth and strong price pressure in the solar markets, the company's expectations for its solar energy activities have not been met.
I've been saying for more than two years now that the solar industry is going through some very serious consolidation. But to be honest, I thought Siemens would be among the few remaining players once the smoke cleared.
Although it should be noted that the company will still sell steam turbines, control systems and generators for customers currently operating solar power plants. So the company still has exposure to the space. As well, Siemens remains a leader in the offshore wind space, where competition is quite limited.
Siemens was up 1.24% in pre-market.