By Kim Richters
German engineering conglomerate Siemens AG reported results for the first quarter of its fiscal year on Wednesday. Here's what you need to know:
REVENUE: Revenue for the quarter increased to EUR20.32 billion from EUR20.12 billion, but fell 1% on comparable basis, according to the company. Analysts expected revenue of EUR20.64 billion, according to a consensus provided by the company.
NET PROFIT: Net profit rose slightly to EUR1.08 billion from EUR1.01 billion in the same period a year earlier. Analysts expected net profit of EUR921 million, according to the consensus.
Adjusted earnings before interest, taxes and amortization from industrial businesses fell 30% to EUR1.43 billion, mainly due to a loss at Siemens Gamesa Renewable Energy, it said. The gas and power business saw additional costs related to the setup of its spin-off, Siemens said, calling the overall performance of its energy businesses weak.
ORDERS: Orders fell to EUR24.76 billion from EUR25.17 billion due to a significantly lower volume of large orders in the mobility division, the company said. Analysts expected orders to be EUR22.80 billion.
Overall, Siemens saw a "weak start to 2020," analysts at UBS said.
WHAT WE WATCHED:
-SPIN-OFF: Siemens said the spinoff of its energy business was going as planned, with the company listing the entity on the stock market later this year. Late Tuesday, the company also said it is acquiring Iberdrola stake in Siemens Gamesa. Siemens' overall Gamesa stake will be folded into the new energy business.
-ENVIRONMENTAL CONCERNS: Siemens CEO Joe Kaeser said at a press conference that the criticism the company faces for its involvement in a controversial coal-mine project "seemed almost grotesque" in light of other measures the company took to fight climate change.
-OUTLOOK 2020: Siemens backed its full-year guidance.
Write to Kim Richters at firstname.lastname@example.org