Siemens reports slight profit fall as climate activists target annual meeting

  • Net profit for the period from October to December 2019 came in at 1.09 billion euros with orders at 24.76 billion euros, down 2% from the same period in the previous year.
  • The annual shareholder meeting in Munich on Wednesday faces protests over Siemens’ association with Australian coal mine operator Adani and its controversial Carmichael project.

Siemens reported a 3% fall in net profit in its fiscal first quarter, weighed down by weakness in the auto and energy sectors, as it begins a shareholder meeting blighted by protests.

Net profit for the period from October to December 2019 came in at 1.09 billion euros ($1.2 billion) with orders at 24.76 billion euros, down 2% from the same period in the previous year.

The Munich-based conglomerate confirmed its full-year outlook for “moderate growth in comparable revenue, net of currency translation and portfolio effects.” On a comparable basis excluding currency translation and portfolio effects, orders declined 4% from the previous year and revenue was down 1%, but the order backlog reached a new high of 149 million euros.

CEO Joe Kaeser said in the earnings report that the slower first fiscal quarter was expected, with energy weakness reinforcing the company’s priorities. Siemens plans to carve out its gas and power division and merge it with its 59% stake in Siemens Gamesa Renewable Energy to create Siemens Energy, which will be listed on the German stock exchange in September as planned.

Siemens shares edged 0.2% lower Wednesday morning, while Siemens Gamesa climbed 2.3% and Siemens Health added 1.6%.

Source: https://www.cnbc.com/2020/02/05/siemens-reports-slight-profit-fall-as-climate-activists-target-annual-meeting.html

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