Siemens Shares Tumble After Taking Charge From Russia Exit
May 12 2022 - 4:21AM
Dow Jones News
By Ed Frankl
Shares in Siemens AG fell after the company said it would exit
the Russian market after 170 years, taking a roughly 600
million-euro ($630.9 million) charge in its second-quarter
earnings.
Shares at 0740 GMT were down 7.1% at EUR108.56.
The German industrial company in March put on hold all new
business in Russia, which in 2021 generated around 1% of the
company's revenue.
It meant Siemens's net profit in the January-March period was
affected as a result, declining on year to EUR1.21 billion from
EUR2.39 billion a year earlier.
That was below expectations of EUR1.73 billion, according to
analysts' estimates provided by the company, although without the
impairment, profits would have come in line, Citi analyst Martin
Wilkie said in a research note.
In comments to the media, Chief Executive Roland Busch said
Siemens foresees further risks to net income in the "low- to
mid-triple-digit million range" from consequences of the Russia
exit, though he couldn't give an exact time frame.
Recent Omicron coronavirus outbreaks and lockdowns in the
Chinese cities of Shanghai and Shenzhen also pose a risk for the
third quarter, Mr. Busch said.
So far, the Munich-based company said it has avoided major
disruptions from increased supply-chain risks associated with
logistics issues, as well as shortages of electronic components and
raw materials.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
May 12, 2022 04:06 ET (08:06 GMT)
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