Siemens achieved a net attributable profit of 1,022 million euros in the first nine months of its fiscal year –concludes in September–, which represents a fall of 79.5% compared to the result recorded in the same period of the previous year, after suffering losses of 1,655 million between April and June.
The result of the German engineering group reflects the adverse impact of 2,703 million euros related to the impairment of the value of the 35% stake that the multinational holds in Siemens Energymain shareholder of Siemens Gamesa Renewable Energy (SGRE), in addition to other €600 million for exposure to Russia of the company.
Thus, in the third quarter of its fiscal year, Siemens scored losses of 1,655 million euros, in contrast to the net attributable profit of 1,352 million recorded between April and June 2021, which represents the first quarterly ‘red numbers’ for the Munich multinational since the fourth quarter of 2010.
The turnover of Siemens in the first nine months of the fiscal year reached 51,405 million euros, 14.7% above of the income recorded a year earlier, including a turnover of 17,867 million between April and June, 11% more.
On its side, the orders received by Siemens increased by 28.5% year-on-year in the first nine months of the fiscal year, to 67,193 million, with growth of 7.4% in the third fiscal quarter, to 22,006 million.
Improve digital business
In nine months, the Siemens digital business increased its revenues by 16%, up to 13,842 million, while the intelligent infrastructure area had a turnover of 12,188 million, 13% more. For its part, the Siemens mobility business increased its turnover by 4%, to 7,002 million, while the medical technology unit billed 15,714 million, 22% more.
Siemens Chairman and CEO Roland Busch highlighted high demand that enabled comparable order growth of 20% since the start of the year, stressing that Siemens has “the right strategy to succeed even in times of uncertainty.” .
For the exercise as a whole, Siemens expects comparable revenue growth of 6% to 8%and is confident of achieving profitable growth in its industrial business.
After the €2.7 billion impairment of its stake in Siemens Energy in the third fiscal quarter, the multinational has adjusted its forecasts to include an adverse impact of 3.37 euros per shareresulting in an earnings per share range of between €5.33 and €5.73, compared to the original range of between €8.70 and €9.10, excluding this impairment.