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1/30/2019, 7:31 AM (Source: TeleTrader)
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Siemens posts 49.4% drop in profit to €1.12B

Siemens AG reported growth in revenue of 1.5% on an annual basis to €20.12 billion for the first fiscal quarter, through the end of December. The numbers released on Wednesday reveal a fall in earnings of 53% to €1.26 per share, compared to the consensus of €1.34 published by the company. It attributed the gap of €0.08 per share to severance charges. The overall decline, 49.4% to €1.12 billion, came against the positive impact one year before from the sale of Osram Licht AG and tax relief in the United States, according to the engineering giant.

"There is still much to do before we achieve industry-leading margins in all our businesses," said Joe Kaeser, president and chief executive. Orders surged 12% to €25.17 billion. In diluted terms, earnings per share fell 53% to €1.24. The cost of sales advanced 2.5% to €14.2 billion.

The turbine maker based in Berlin and Munich highlighted sharp growth in orders in the mobility division, followed by energy management, power and gas and process industries and drives, compared to a drop in Siemens Gamesa. Stressing expectations of a "continued favorable market environment," it projected basic earnings for the current fiscal year at €6.3 to €7 excluding severance charges, a profit margin of 11% to 12% in the industrial business and "moderate growth" in turnover.

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