Siemens 3Q Net Profit Fell as Margins Hit by Severance Charges
August 01 2019 - 1:49AM
Dow Jones News
By Nathan Allen
Siemens AG (SIE.XE) said Thursday that net profit fell in the
third quarter of its fiscal year in part as a result of higher
severance charges, which held back margins.
Net profit at the German engineering group fell to 1.03 billion
euros ($1.13 billion) from EUR1.11 billion a year earlier. Revenue
climbed to EUR21.28 billion from EUR20.47 billion, the company
said.
Weaker earnings at Siemens's Digital Industries and
Gas-and-Power units offset gains at the group's Mobility unit and
health-care subsidiary Siemens Healthineers AG (SHL.XE), the
company said.
Heavy severance charges weighed on Siemens's industrial profit
margin, which declined to 9.6%, undershooting a company-compiled
consensus estimate of 10.8%.
Still, orders booked over the quarter grew 8% on year to
EUR24.51 billion, and the company confirmed its guidance for the
fiscal year.
"A robust mobility sector and stringent project execution will
help us make good on our promises for the year," Chief Executive
Joe Kaeser said.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
August 01, 2019 01:34 ET (05:34 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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