FRANKFURT, Germany (AP)—Industrial equipment maker Siemens saw profit rise in the first three months of the year as the company booked a one-time gain related to pensions while profits from its factory digitalization business helped offset sagging results from fossil fuel power generation.
Net profit rose 39 percent to 2.02 billion euros ($2.39 billion) from 1.45 billion euros in the year-earlier quarter, the company’s fiscal second.
Revenue was flat at 20.1 billion euros after exchange rate shifts took 6 percent off. Orders slipped 2 percent to 22.3 billion euros.
Profit slumped 74 percent at the power and gas division, but jumped 40 percent at the digital factory division. The company booked a one-time gain of 900 million euros by transferring shares in IT firm Etos SE to its pension fund.
Joe Kaeser, President and Chief Executive Officer of Siemens AG, stated: “Most of our businesses, primarily our digital offerings, showed impressive performance and operationally more than offset structural challenges in fossil power generation. By raising our guidance, we demonstrate our commitment to the company’s capability to master structural change and shape digital industry.”
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