Siemens reports a loss of 1.5 billion euros in the third quarter – although things are going well for the group. The problem is depreciation and the war in Ukraine.
For the first time in almost 12 years, Siemens is in the red – even though business is going well. The Munich group made a loss of 1.5 billion euros in the third business quarter, as it announced on Thursday. The reasons for this are a high depreciation on the remaining share in the former energy division Siemens Energy and burdens in connection with Russia, since Siemens is withdrawing from there because of the Ukraine war.
The Energy write-down, which Siemens had already announced at the end of June, puts pressure on the result with 2.7 billion euros – Russia with 0.6 billion. That was too much for the otherwise solid ongoing business of the Munich company to be able to compensate for this. Sales grew by a nominal 11 percent to 17.9 billion, and earnings in the industrial business by 27 percent to 2.9 billion. In the case of the latter, however, a profit of 0.7 billion from the sale of Yunex Traffic was also noticeable.
For the current year, the massive burdens from the third quarter also cost Siemens the earnings forecast, which is now lower by the amount of the Energy depreciation. On the other hand, other signs for the future are good: After an increase in incoming orders of 22 billion euros, the order backlog is now at a record value of 99 billion euros, according to Siemens. “We have the right offer and the right strategy to be successful even in uncertain times,” emphasized Siemens CEO Roland Busch.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
