Siemens: operating profit down, energy pressured
(CercleFinance.com) - Industrial group Siemens saw its operating profit fall in the October-December quarter, due to a weak performance across its energy businesses.
Firs-quarter operating profit fell to 1.4 billion euros, down 30% from 2 billion euros a year ago, Siemens said on Wednesday.
Net income decreased by 3% at 1.1 billion euros, mainly due to a loss at Siemens Gamesa and market weakness for short-cycle businesses, it added.
Revenue inched up 1% to 20.3 billion euros, while new orders fell by 2% to 24.8 billion euros, on the back of significantly lower volume from large orders in its transportation (mobility) business.
The German company - which plans to list its Siemens Energy unit on the stock exchange in September - said it expects global macroeconomic development to remain subdued in fiscal 2020.
It again expects to achieve moderate growth in comparable revenue, net of currency translation and portfolio effects.
Basic EPS is expected in a range from 6.3 euros to 7 euros, compared to 6.41 euros in fiscal 2019.
The shares were down 1.2% in Frankfurt after this report.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Firs-quarter operating profit fell to 1.4 billion euros, down 30% from 2 billion euros a year ago, Siemens said on Wednesday.
Net income decreased by 3% at 1.1 billion euros, mainly due to a loss at Siemens Gamesa and market weakness for short-cycle businesses, it added.
Revenue inched up 1% to 20.3 billion euros, while new orders fell by 2% to 24.8 billion euros, on the back of significantly lower volume from large orders in its transportation (mobility) business.
The German company - which plans to list its Siemens Energy unit on the stock exchange in September - said it expects global macroeconomic development to remain subdued in fiscal 2020.
It again expects to achieve moderate growth in comparable revenue, net of currency translation and portfolio effects.
Basic EPS is expected in a range from 6.3 euros to 7 euros, compared to 6.41 euros in fiscal 2019.
The shares were down 1.2% in Frankfurt after this report.
Copyright (c) 2020 CercleFinance.com. All rights reserved.