Siemens profit rises despite drop in orders | Business| Economy and finance news from a German perspective | DW | 03.08.2017
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Siemens profit rises despite drop in orders

German industrial conglomerate Siemens has seen a pickup in bottom-line earnings for its third quarter, beating analysts' expectations. But the firm's energy units recorded a marked drop in large contracts.

Germany's Siemens Group on Thursday reported a 7-percent increase in net profit to almost 1.5 billion euros ($1.8 billion) for the third quarter of its financial year between April and June.

The company - producing anything from wind turbines to trains and medical equipment - saw its revenues rise by some 8 percent to reach 21.4 billion euros.

But the group booked a 6-percent drop in overall orders, mainly driven by fewer contracts for its power, gas and wind units. Siemens pointed to global energy trends sapping demand for its gas turbines and related products, also mentioning volatility in orders for offshore wind turbines.

Other divisions by contrast reported big increases in orders, especially the train-manufacturing mobility unit and the digital factor unit, which makes high-tech equipment for production lines.

Kaeser to stay

Siemens also announced Thursday it was planning a 2018 IPO for its medical equipment division Healthineers (formerly Siemens Healthcare). The unit logged a 4-percent rise in Q3 revenues as net profit surged by 9 percent to 579 million euros.

The supervisory council said Chief Executive Joe Kaeser would remain at the helm of the company for at least another two and a half years.

"Kaeser has put a lot of effort into the firm's restructuring and reorientation process," advisors council head Gerhard Cromme said in a statement.

Kaeaser has overseen a radical overhaul of the Siemens Group. His "Vision 2020" program has ensured the firm is focusing more on its digitalization, automation and electrification businesses.

hg/tr (Reuters, dpa, AFP)

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