Siemens 1Q Hit by Restructuring Costs, Weak Energy Businesses -- Earnings Review
February 05 2020 - 8:05AM
Dow Jones News
By Kim Richters
German engineering conglomerate Siemens AG (SIE.XE) reported
results for the first quarter of its fiscal year on Wednesday.
Here's what you need to know:
REVENUE: Revenue for the quarter increased to EUR20.32 billion
from EUR20.12 billion, but fell 1% on comparable basis, according
to the company. Analysts expected revenue of EUR20.64 billion,
according to a consensus provided by the company.
NET PROFIT: Net profit rose slightly to EUR1.08 billion from
EUR1.01 billion in the same period a year earlier. Analysts
expected net profit of EUR921 million, according to the
consensus.
Adjusted earnings before interest, taxes and amortization from
industrial businesses fell 30% to EUR1.43 billion, mainly due to a
loss at Siemens Gamesa Renewable Energy SA (SGRE.MC), it said. The
gas and power business saw additional costs related to the setup of
its spin-off, Siemens said, calling the overall performance of its
energy businesses weak.
ORDERS: Orders fell to EUR24.76 billion from EUR25.17 billion
due to a significantly lower volume of large orders in the mobility
division, the company said. Analysts expected orders to be EUR22.80
billion.
Overall, Siemens saw a "weak start to 2020," analysts at UBS
said.
WHAT WE WATCHED:
-SPIN-OFF: Siemens said the spinoff of its energy business was
going as planned, with the company listing the entity on the stock
market later this year. Late Tuesday, the company also said it is
acquiring Iberdrola SA's (IBE.MC) stake in Siemens Gamesa. Siemens'
overall Gamesa stake will be folded into the new energy
business.
-ENVIRONMENTAL CONCERNS: Siemens CEO Joe Kaeser said at a press
conference that the criticism the company faces for its involvement
in a controversial coal-mine project "seemed almost grotesque" in
light of other measures the company took to fight climate
change.
-OUTLOOK 2020: Siemens backed its full-year guidance.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
February 05, 2020 07:50 ET (12:50 GMT)
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