German industrial conglomerate Siemens said Thursday it had made a significant net loss as it counted the cost of struggles at its former energy unit.
Between April and June, Siemens recorded a net loss of 1.5 billion euros ($1.5 billion), after a mirror 1.5-billion-euro profit in the same period last year.
The loss was due to a 2.7 billion euro devaluation of the group’s “stake in Siemens Energy and Russia-related impacts totalling 0.6 billion euros”, Siemens said in a statement.
Shares in Siemens Energy, which was spun off from its parent in 2020, have fallen around 25 percent since the start of the year.
Siemens Energy has had to contend with the struggles of its own wind-energy subsidiary, Siemens Gamesa, which has struggled to turn a profit despite surging demand for renewable energy.
Quarterly revenues at Siemens, which makes products ranging from trains to factory equipment, rose 11 percent year-on-year to 17.9 billion euros, with progress seen across the board.
Its “digital industries” division, which includes factory automation, led the way with sales up 18 percent to 4.9 billion euros.
The improvement came despite the turbulence caused by the Russian invasion of Ukraine, soaring inflation and persistent bottlenecks in supply chains that can be traced back to the coronavirus pandemic.
The Munich-based group had been able “to avoid larger disruptions due to supply chain risks”, it said.
Siemens, which runs its business year from October to September, said it continued to expect a profitable 12-month period, while reducing its guidance in line with the hit to its stake in Siemens Energy.
As such, the group expected earnings per share to be around 5.33 to 5.73 euros, down from an earlier estimate around nine euros.
Otherwise, Siemens still expected revenue growth in the current business year of six to eight percent.
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