Siemens Backs Guidance After Slow 1Q -- Update
February 05 2020 - 2:07AM
Dow Jones News
By Kim Richters
Siemens AG (SIE.XE) on Wednesday reported a slight rise in
first-quarter net profit but a sharp drop in adjusted earnings, and
it backed its guidance for the full year.
Net profit at the German engineering conglomerate rose slightly
to 1.08 billion euros ($1.19 billion) from EUR1.01 billion a year
earlier.
The company's adjusted earnings before interest, taxes and
amortization for the quarter dropped 30% to EUR1.43 billion, while
its industrial profit margin declined to 7.3% from 10.5%. The sharp
decline was mainly due to a loss at its subsidiary Siemens Gamesa
Renewable Energy (SGRE.MC) and market weakness for its short-cycle
businesses, Siemens said.
Revenue for the quarter increased to EUR20.32 billion from
EUR20.12 billion, the company said, adding, however, that revenue
on a comparable basis fell 1%.
Orders fell to EUR24.76 billion from EUR25.17 billion due to a
lower volume of large orders in its mobility business, according to
the company.
"After a powerful finish in fiscal 2019, the first quarter
started slowly as expected," Siemens CEO Joe Kaeser said. "The weak
performance across our energy businesses reinforces our
priorities."
Analysts had expected quarterly net profit of EUR912 million on
revenue of EUR22.64 billion, according to a consensus provided by
the company.
The company backed its guidance for the full fiscal year 2020,
which includes moderate growth in comparable revenue and earnings
per share from net income to be between EUR6.30 to EUR7.00,
compared with EUR6.41 in the comparable period.
Siemens said late Monday that it will acquire Iberdrola SA's
(IBE.MC) stake in the Siemens Gamesa Renewable Energy for EUR1.1
billion.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
February 05, 2020 01:52 ET (06:52 GMT)
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