UPDATED: Original story below the break.
Siemens net profit flat after restructuring charges
FRANKFURT, Germany (AP) — Germany’s Siemens AG says net profit fell slightly in the most recent quarter as better earnings from sales of medical equipment were offset by slower business at its power and gas division.
Profits for the April-June quarter were also hurt by 274 million euros ($301 million) in severance charges as the maker of gas turbines, trains and other heavy equipment streamlined to cut costs.
Net profit eased 2 percent to 1.376 billion euros, down from 1.399 billion euros in the same quarter a year ago. Revenue rose 8 percent to 18.844 billion euros, boosted by exchange rate shifts that magnified earnings in other currencies when translated to euros.
Currency tail winds helped profit at Siemens medical business, which rose to 549 million euros from 445 million euros.
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MUNICH, Germany — Siemens today released its third quarter financial earnings results.
The company reported that net income fell 13% in its fiscal third quarter to $725.4 million, compared with earnings of about $832.2 million in the same period a year ago. Sales fell 15%, to $19.95 billion, during the quarter ended June 30.
“Overall our businesses delivered solid underlying profitability despite a softening market environment. We expect to maintain our momentum with a strong closing quarter for fiscal 2015.” — Joe Kaeser, President and Chief Executive Officer of Siemens AG
Highlights:
- Third-quarter orders up 4% year-over-year, at €19.9 billion, including a €1.6 billion order in Mobility; excluding currency translation and portfolio effects, orders down 5%
- Revenue 8% higher at €18.8 billion, for a book-to-bill ratio of 1.05; revenue 3% lower on a comparable basis
- Industrial Business profit level, at €1.8 billion; strong improvements in Energy Management and Healthcare largely offset by a decline in Power and Gas
- Net income at €1.4 billion; basic earnings per share (EPS) increased to €1.65, up from €1.62 in Q3 FY 2014
- At the end of the quarter, the Power and Gas Division closed its acquisition of Dresser-Rand, substantially expanding its offerings for the oil and gas industry and distributed power generation