Home Europe & UK Siemens sees strongest coronavirus impact in next quarter as second-quarter profit plunges
Siemens sees strongest coronavirus impact in next quarter as second-quarter profit plunges

Siemens sees strongest coronavirus impact in next quarter as second-quarter profit plunges

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The trains to industrial software maker said it now expected a “moderate decline” in comparable full year revenue. Siemens had previously predicted moderate growth

ZURICH: Siemens expects “even stronger impacts” from the coronavirus pandemic in the weeks ahead, it said on Friday as it ditched its 2020 guidance and posted an 18% drop in industrial profit during its second quarter.

The trains to industrial software maker said it now expected a “moderate decline” in comparable full year revenue. Siemens had previously predicted moderate growth.

Its flagship factory automation unit and smart infrastructure business would be the hardest hit, the company said.

During its second quarter Siemens said all of its operations were affected by the COVID-19 pandemic as shareholders’ net profit fell 64% to 652 million euros. ($706.90 million)

Group orders fell 8% to 15.15 billion euros while adjusted operating profit for its industrial business dropped 18% to 1.59 billion euros.

Revenue was flat at 14.23 billion euros as increases at Siemens Healthineers and its train-making mobility unit offset a decline at Digital Industries.

The figures did not include Siemens Gas and Power and Siemens Gamesa Renewable Energy, which are being separated into a new company called Siemens Energy that will be floated later this year.

Source: reuters
Anand Gupta Editor - EQ Int'l Media Network

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