German industrial group Siemens has reported its first quarterly loss in practically 12 years after it was pressured right into a multibillion-euro write down on its spun-off power enterprise and wound down its 170-year-old operation in Russia.
The Munich-based firm misplaced €1.5bn within the three months to the tip of June, down from a €1.5bn web revenue in the identical interval final yr, regardless of revenues rising by 11 per cent and a powerful order e book.
This loss was largely due to a €2.7bn impairment on the worth of its stake in Siemens Energy, which has itself been dragged down by the closely lossmaking Gamesa wind turbine subsidiary, in addition to a €400mn write down associated to the winding down of Siemens’ operations in Russia.
Shares in Siemens Energy, of which Siemens nonetheless owns 35 per cent, have greater than halved within the area of two years.
Gamesa, the world’s largest offshore wind turbine maker, has struggled with onerous wind-turbine contracts as commodity prices have soared.
In May, Siemens Energy made a €4bn supply to purchase the remaining 33 per cent of Gamesa, as a way to acquire direct management of the struggling firm.
Siemens outcomes come a day after Gamesa competitor Vestas posted a €119mn quarterly loss, with the Danish group citing a “highly challenging business environment” together with excessive uncooked materials and part prices.
Roland Busch, Siemens’ chief government, stated his firm’s core enterprise remained sturdy and had “the right offerings and the right strategy to be successful even in uncertain times”, regardless of present headwinds. He added that restrictions to German gasoline provide would solely have “minor direct effects” on Siemens’ manufacturing, which was not significantly power intensive.
Some corporations have benefited from sharp rises in costs. Steel and supplies group ThyssenKrupp beat analyst predictions on Thursday and virtually tripled its adjusted earnings earlier than curiosity and taxes for the quarter, which got here in at €721mn as revenues soared at its Duisburg plant.
Smaller metal rival Salzgitter likewise strongly beat analyst expectations and posted €505mn in earnings earlier than curiosity and taxes, up from €188mn in the identical interval in 2021, citing report excessive costs for rolled metal.
However each corporations depend on pure gasoline for manufacturing, and have warned that additional provide restrictions in Germany because of the battle in Ukraine may drive them to chop manufacturing.
Separately, Siemens introduced it deliberate to switch its present auditors EY with PwC.