Siemens: share down as Q2 disappoints
(CercleFinance.com) - On Thursday Siemens reported lower-than-expected Q2 operating profit, hit by charges relating to its activities in Russia.
This morning the German industrial giant announced profit for all its industrial activities of 1.8 billion euros for the quarter ended 31 March, lower than the 2 billion euros posted a year ago.
The consensus was looking for operating profit of around 2.4 billion euros.
Total revenue rose 7% LFL to 17 billion euros in the quarter, slightly ahead of the consensus forecast of 16.8 billion euros.
The Munich-based group said that its results were hit by provisions for impairment and other charges totalling 600 million euros, which it booked due to the situation in Russia, mainly in its "Mobility" transport systems business.
Siemens said that it had begun an orderly exit from its industrial activities in the country with a view to eventually withdrawing from the Russian market.
The group also confirmed its targets for FY 2021/2022, including a 6% to 8% LFL increase in annual revenues.
In a reaction note, analysts at Oddo BHF believe that the consensus now seems "a little high", expecting the market to reduce its earnings estimates by around 4% to 5%.
Following this publication, the share fell by 4.5% in initial exchanges on the Frankfurt Stock Exchange, in a market that was down over 2%.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
This morning the German industrial giant announced profit for all its industrial activities of 1.8 billion euros for the quarter ended 31 March, lower than the 2 billion euros posted a year ago.
The consensus was looking for operating profit of around 2.4 billion euros.
Total revenue rose 7% LFL to 17 billion euros in the quarter, slightly ahead of the consensus forecast of 16.8 billion euros.
The Munich-based group said that its results were hit by provisions for impairment and other charges totalling 600 million euros, which it booked due to the situation in Russia, mainly in its "Mobility" transport systems business.
Siemens said that it had begun an orderly exit from its industrial activities in the country with a view to eventually withdrawing from the Russian market.
The group also confirmed its targets for FY 2021/2022, including a 6% to 8% LFL increase in annual revenues.
In a reaction note, analysts at Oddo BHF believe that the consensus now seems "a little high", expecting the market to reduce its earnings estimates by around 4% to 5%.
Following this publication, the share fell by 4.5% in initial exchanges on the Frankfurt Stock Exchange, in a market that was down over 2%.
Copyright (c) 2022 CercleFinance.com. All rights reserved.