Siemens to Wind Down Russia Business, Taking EUR600 Million Impairment in Second Quarter
May 12 2022 - 1:40AM
Dow Jones News
By Ed Frankl
Siemens AG said Thursday it would exit its Russia business,
taking a hit to its second-quarter earnings.
The German industrial company said second-quarter profit was
affected by around 600 million euros ($630.9 million) due to
impairments and other charges related to Russia, mainly at its
mobility segment.
Siemens' net profit declined on year in the January-March period
as a result, falling to EUR1.21 billion from EUR2.39 billion a year
earlier. The year-ago figure also included a EUR900 million gain
from the sale of Flender to The Carlyle Group.
The net-profit figure was below expectations of EUR1.73 billion,
according to analysts' estimates provided by the company.
However, revenue rose 16% to EUR17.04 billion, while orders
jumped 32% to EUR20.98 billion, both coming in above consensus
views.
The company said it avoided major disruptions from increased
supply-chain risks associated with electronics components, raw
materials and logistics.
Siemens confirmed its outlook for 2022.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
May 12, 2022 01:25 ET (05:25 GMT)
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